Which of the following best explains why a firm that needs to borrow money would borrow at long-term rates when short-terms rates are lower than long-term rates? the use of short-term financing over long-term financing for a long-term project will increase the risk of the firm. the firm’s interest payments will be the same whether it uses short-term or long-term financing, so it is essentially indifferent to which type of financing it uses. a firm will only borrow at short-term rates when the yield curve is downward-sloping.
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Which of the following best explains why a firm that needs to borrow money would borrow at long-term...
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