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Which of the following illustrates the use of a hedging (or matching) approach to financing?

 

Short-term assets financed with long-term liabilities.

 

Permanent working capital financed with long-term liabilities.

 

Short-term assets financed with equity.

 

All assets financed with a50 percent equity,50 percent long-term debt mixture.

 

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Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/03/28

The correct answer is choice (B) Permanent working capital financed with long-term liabilities.

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

B is the correct answer Thank you

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

>>>>>> Permanent working capital financed with long-term liabilities.

 

Jose Miguel Lucas Martins
by Jose Miguel Lucas Martins , IT Director - Robotic Process Automation (RPA) , Novo Banco

Permanent working capital financed with long-term liabilities

The hedge here is minimizing duration gap by matching assets and liabilities duration

Muhammad Ramzan Tufail  ACCA
by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

Correct Ans is.

 

Permanent working capital financed with long-term liabilities.>?>>>>>>>>>

Short term assets financed with equty

Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

Permanent working capital financed with >>>>>>>>>>>>>>>>>>>>long-term liabilities.

Deleted user
by Deleted user

Thanks to invitation 

Agree with all answers

Showkat Ahmed Sofi
by Showkat Ahmed Sofi , PROCUREMENT AND LOGISTICS OFFICER , Maestro Event Orchestration (AL JOUHOUZIA AL TAMMA COMPANY)

CC Means Carbon Copy, and BCC Means Blind carbon copy

Kamal Bhandari
by Kamal Bhandari , Group Chief Financial Officer , Omzest Group of Companies

Permanent working capital financed with long-term liabilities.

All other options do not match the timing of the assets with liabilities

mohamed badawy
by mohamed badawy , Head Of Operations , Almajdoui Logistics Company

BPermanent working capital financed with long-term liabilities. ............................,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,(((())))))

 

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