We adopt the philosophy analogous to hedging (maturity matching). Which of the following is the most appropriate form for financing a new capital investment in plant and equipment?

A. Operating ratio B. Sales turnover ratio C. Current ratio D. Acid test ratio

A. Net present value method B. Internal rate of return method C. Profitablity index method D. None of the above

A. a-4, b-3, c-1, d-2 B. a-3, b-4, c-1, d-2 C. a-2, b-3, c-1, d-4 D. a-3, b-2, c-4, d-1

A. All financing by retained earnings only B. No change in the key variables such as EPS and DPS C. The firm has finite life D. All earnings are either distributed as dividends or invested internally immediately