Which of the following tend to rise when a firm switches to


Which of the following tend to rise when a firm switches to a flexible financial policy from a restrictive financial policy?

I. Restocking costs

II. Price reductions to offset limited selection

III. Storage costs

IV. Current asset opportunity costs

a - I and II only

b - III and IV only

c - I, III, and IV only

d - I, II, and III only

e - II, III, and IV only

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Financial Management: Which of the following tend to rise when a firm switches to
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