[Solved] Which of the following illustrates the use of a hedging (or matching) approach to financing?

McqMate

Q.	Which of the following illustrates the use of a hedging (or matching) approach to financing?
A.	Short-term assets financed with long-term liabilities.
B.	Permanent working capital financed with long-term liabilities.
C.	Short-term assets financed with equity.
D.	All assets financed with 50 percent equity, 50 percent long-term debt mixture.
Answer» B. Permanent working capital financed with long-term liabilities.

4.6k

0

Do you find this helpful?

29

View all MCQs in

Financial Management

Discussion

No comments yet

Related MCQs

Financing a long-lived asset with short-term financing would be
Which of the following would be consistent with a conservative approach to financing working capital?
Which of the following would be consistent with a more aggressive approach to financing working capital?
NOI Approach advocates that the degree of debt financing is:
In calculating the proportional amount of equity financing employed by a firm, we should use:
Which one of the following activities is outside the purview of financing decision in financial management?
Which of the following forms of equity financing is especially designed for funding High Risk & High Reward projects?
In calculating the costs of the individual components of a firm's financing, the corporate tax rate is important to which of the following component cost formulas?
In order to calculate the proportion of equity financing used by the company, the following should be used:
Reserves & Surplus are which form of financing?