In the Context of Managing Working Capital,the Hedging Principle Refers

question 105

Multiple Choice

In the context of managing working capital,the hedging principle refers to which of the following?

• A) speculation regarding the direction of short-term interest rates
• B) the usage of interest rate swaps
• C) matching the maturity of the source of financing to the cash flow generating characteristics of the asset being financed
• D) protecting the firm against the risk of rising interest rates

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