Which of the Following Is Most Likely to Be a Temporary

question 134

Multiple Choice

Which of the following is most likely to be a temporary source of financing?

• A) Commercial paper
• B) Preferred stock
• C) Long-term debt
• D) All of the above

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Definitions:

Risk-Free Rate

The theoretical rate of return on an investment with no risk of financial loss, often represented by government bonds.

Unsystematic Risk

The type of risk that is specific to a company or industry, stemming from factors like management decisions or regulatory changes, and can be mitigated through diversification.

Limited Number

A restricted quantity, usually referring to a specific allocation or issuance of items, resources, or opportunities.

Standard Deviation

A measure of the dispersion or variability of a set of data points from their mean, used in statistics to quantify the amount of variation or dispersion of a dataset.