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*Only 350 Words* * Fresh Work Only* There are several strategies for short-term financing. Describe two strategies and include the advantages and disadvantages of each strategy

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*Only 350 Words* * Fresh Work Only*
There are several strategies for short-term financing. Describe two strategies and include the advantages and disadvantages of each strategy
Answered Same Day Dec 25, 2021

Solution

David answered on Dec 25 2021
115 Votes
The short term financing has been used with an intention to use the funds for the purpose of
increasing the inventory levels, meet out the daily need of the corporate. These funds are being
aised for a period up to one year. There are different sources which are being used by the
corporate to raise the funds. Some of them are as follows: Commercial papers, letter of credit,
epurchase agreements, promissory notes etc.
There are certain different strategies in place which the management can use for raising the
funds.
Hedging strategy: This strategy will put the company in moderate risk and similar level of
profitability. In this case, the funds that have been raised are completed hedged. In this case, the
payment for the funds...
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