What is the most critical reason why increases in long-term permanent assets should be financed...
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Finance
What is the most critical reason why increases in long-term permanent assets should be financed with long-term debt?
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Short-term interest rates are higher than long-term rates
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Long-term interest rates fluctuate more than short-term rates
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Short-term debt may not be renewable at maturity
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Long-term interest rates can be accurately forecast but short-term rates cannot
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None of the answers are correct.
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