Which of the following statements concerning liquidity and d

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Which of the following statements concerning liquidity and debt is true?

a. A firm can reduce its risk for illiquidity by shifting from short-term debt to long-term

debt.

b. The greater the use of short-term debt, the lower the risk of illiquidity.

c. Long-term debt is generally less costly than short-term debt.

d. The risk of illiquidity does not depend on the mix of short-term versus long-term debt.

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