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Which One of These Is Most Associated with a Disadvantage

Question 56

Multiple Choice

Which one of these is most associated with a disadvantage of the relaxed strategy of long- versus short-term financing?


A) Transaction costs are required to continually obtain financing.
B) Short-term investment income is often unattractive.
C) Investment opportunities must frequently be ignored.
D) Long-term financing has burdensome tax consequences.

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