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Advantages and disadvantages - matching maturities of assets and liabilities

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What are the advantages of matching maturities of assets and liabilities? What are the disadvantages?

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This solution explains the advantages and disadvantages of matching maturities of assets and liabilities.

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Financing of Current Assets also involves a trade-off between risk and return. A firm can choose from short- or long-term sources of finance. If the firm uses more of short-term funds for financing both current and fixed assets, its financing policy is considered aggressive and risky. Its financing policy ...

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