Financing with long-term debt


Assignment:

Q1. If short-term rates are lower than long-term rates, why may a business still choose to finance with long-term debt?

Q2. Explain the following statement: “A firm’s financing policy depends in large part on the nature of its assets.”

Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.

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Operation Management: Financing with long-term debt
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