By using long-term financing to finance part of temporary current assets, a firm may have less risk

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By using long-term financing to finance part of temporary current assets, a firm may have less risk but lower returns than a firm with a normal financing plan. Explain the significance of this statement.

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Foundations of Financial Management

ISBN: 978-1259194078

15th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

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Question Posted: Oct 14, 2014 07:13 AM

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By using long-term financing to finance part of temporary current assets, a firm may have less risk

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Foundations of Financial Management

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