Which is an appropriate matching of sources of funds

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Problem 1: Which of the following is an appropriate matching of sources of funds with uses of funds?

a) Financing an increase in accounts receivable with long term bond (loan)
b) Purchasing new equipment with a short term loan
c) Financing a plant expansion by selling accounts receivables (factoring)
d) Purchasing new equipment with a long term loan

Problem 2: Which form of long-term financing, if available, is usually used last?

a) Debt
b) Common shares
d) Preferred shares
d) Retained Earnings

Reference no: EM132736936

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