All of the Following Are Likely to Increase the Cost

question 91

Multiple Choice

All of the following are likely to increase the cost of a company's short-term financing EXCEPT

• A) an increase in the bank's prime lending rate.
• B) an increase in the compensating balance required.
• C) taking a loan on a discount basis.
• D) an increase in the company's debt rating by Moody's or Standard and Poors.

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