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QUESTION
Which of the following statements relating to working capital financing is not correct?
Which of the following statements relating to working capital financing is not correct?
a) Long-term debt is less risky that short-term debt
b) An aggressive policy uses long-term debt to finance fluctuating current assets
c) The matching principle indicates that fluctuating current assets should be financed by short-term debt
d)Short-term debt is cheaper than long-term debt
e) A conservative policy uses long-term debt to finance fixed assets
