Quiz Ch 15 – T/F Yield Curve Effect on Current Ratio
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: In an upward-sloping yield curve scenario, short-term debt is typically less expensive than long-term debt. Therefore, if a firm’s CFO anticipates a continued upward-sloping yield curve, this could lead to a relatively low current ratio, assuming other factors remain constant.