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Which of the Following Statements Is Generally NOT True

Question 41

Multiple Choice

Which of the following statements is generally NOT true?


A) A firm should attempt to match the nature of a project with the duration of the financing it needs.
B) Short-term debt usually carries lower interest rates than long-term debt with comparable default risk.
C) Issuing variable rate debt increases financial uncertainty relative to issuing fixed-rate debt.
D) All of the above statements are true.

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