1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lisov135 [29]
3 years ago
9

If we could accurately forecast interest rates, financing decisions would be easy. Although it's difficult to predict future int

erest rate levels, it is easy to predict that interest rates will fluctuate. Therefore, sound financial policy calls for using a mix of long- and short-term debt as well as equity to position the firm so that it can survive in any interest rate environment.
The firm's optimal financial policy depends on the nature of the firm's assets—the easier its assets can be sold, the more feasible it is for the firm to use ____ -term debt.

Consequently, it is logical for a firm to finance current assets with ___ -term debt and to finance fixed assets with ___ -term debt.
Business
1 answer:
Margarita [4]3 years ago
6 0

Answer:

the Correct Answers are:

1.  Short Term Debt

2. Short Term Debt

3. Long Term Debt            

Explanation:

Businesses manage a variety of current assets. Permanent current assets are needed for the firm to maintain its business, and they will be carried even through downturns in business cycles. Temporary current assets fluctuate seasonally or with business cycles. Each organisation must devise an optimal financing strategy that best fits its business situation and best manages its risk

It is thus logical to ensure that:

  • All fixed assets and the nonseasonal portion of current assets, as well as seasonal needs of current assets, are best financed with long-term capital.
  • While seasonal needs of current assets are financed with short term loans.
You might be interested in
As a sole proprietor, what are the ways in which you can raise money to establish your business, and make it grow?
kolezko [41]

Answer:

Take out a small business loan.

Explanation:

A small loan is a way, based on your credit, to establish a way to raise money.

3 0
3 years ago
Claudia, a senior accountant, likes to work on her own and hence does not come out as a team player. She takes up all the work t
MrMuchimi
Overmanaging is the most evident mistake Claudia made as a senior accountant.
8 0
3 years ago
On September 15, 2021, Oliver's Mortuary received a $3,600, nine-month note bearing interest at an annual rate of 14% from the e
pentagon [3]

Answer:

The Journal entry is as follows:

On December 31, 2021

Interest Receivable A/c Dr. $147

          To Interest revenue A/c      $147

(To record the interest receivable)

Working notes:

Interest Receivable:

= Amount received × Annual rate of interest × Time period

= $3,600 × (14% ÷ 12) × 3.5

= $3,600 × 0.01167 × 3.5

= $147

8 0
3 years ago
Internet access to use online banking costs you $39.99 per month. A book of checks costs you $17.95 per 100. Your bank charges y
algol [13]

Answer:

$21.9275

Explanation:

The cost of online banking is $39.99

The cost of checks books is $17.95 per 100. The cost associated with 25 checks

= $17.25/100 x 25

=0.1725 x 25

=$4.3125

The cost of a stamp is 50 cents, which is $0.50

for 25 checks

=$0.50 x 25

=$12.5

The writing fee

=$0.05 x 25

=$1.25

Total cost of using checks

= $4.3125 + $12.5 +$1.25

=$18.0625

the difference between online banking and checks

= $39.99 - $18.0625

=$21.9275

6 0
3 years ago
3F − is bigger than F because
Nady [450]

Answer:

IN 3F THERE WOULD BE MORE ELECTRONIC REPULSIONS AS COMPARED TO SIMPLE F.THE ELECTRONS WOULD TEND TO MOVE APART THUS CREATING THE SIZE OF 3F BIGGER AS COMPARED TO THAT OF THE SIMPLE F MOLECULE.

Explanation:

4 0
3 years ago
Other questions:
  • Drag the tiles to the correct boxes to complete the pairs.
    14·1 answer
  • If the estimated price elasticity of demand for foreign travel is 4:
    5·1 answer
  • Esky corporation, a chain of retail stores, monitors 10 performance indicators that are believed to be correlated with better qu
    13·1 answer
  • When Frito-Lay introduced its Stax brand of potato chips. These chips were meant to compete directly against Pringles. The inten
    6·1 answer
  • Hiya has a gross pay of $926.50 by how much will hiya's gross pay be reduced if she has the following deduction withheld from he
    12·1 answer
  • Suppose there are five goods in the economy, A-E. The current-year quantity of each is 10A, 20B, 30C, 40D, and 50E. Current-year
    11·1 answer
  • This motion enforces the rules of an organization?
    12·1 answer
  • Gilbert would like to foster goal commitment in his department. He decides to do this by encouraging the collaboration of employ
    11·1 answer
  • A sales associate listed a condo for $205,000. A sales associate from a competing office called the listing associate to inform
    13·1 answer
  • Halima wants a Manufacturing career. She wants to be very successful and get paid well. Which career pays the
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!