A conservatively financed firm would

use long-term financing for all fixed assets and short-term financing for all other assets. finance a portion of permanent assets and short-term assets with short-term debt. use equity to finance fixed assets, long-term debt to finance permanent assets, and short-term debt to finance fluctuating current assets. use long-term financing for permanent current assets and fixed assets and a portion of the short-term fluctuating assets and use short-term financing for all other short-term assets.