Which of the following illustrates the use of a hedging (or matching) approach to financing? a) Short-term assets financed with long-term liabilities. b) Permanent working capital financed with long-term liabilities. c) Short-term assets financed with equity. d) All assets financed with 50 percent equity, 50 percent long-term debt mixture.

Which of the following illustrates the use of a hedging (or matching)

1.	Which of the following illustrates the use of a hedging (or matching) approach to financing? a) Short-term assets financed with long-term liabilities. b) Permanent working capital financed with long-term liabilities. c) Short-term assets financed with equity. d) All assets financed with 50 percent equity, 50 percent long-term debt mixture.
Answer» b) Permanent working capital financed with long-term liabilities.

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