The larger the duration of an asset or liability of the firm a The more

The larger the duration of an asset or liability of

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10.The larger the duration of an asset or liability of the firma.The more sensitive its value is to interest rate changesb.The less sensitive its value is to interest rate changesc.The lower will be its valued.The higher will be its value11.Which of the following statements is most correct?12.Which of the following statements is most correct?
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313.If debt financing is used, which of the following is true?14.Heavy use of off-balance sheet lease financing will tend toa.Make a company appear more risky than it actually is because its stated debt ratio will appear higherb.Make a company appear less risky than it actually is because its stated debt ratio will appear lowerc.Affect a company’s cash flows but not its degree of riskd.Have no effect on either cash flows or risk because the cash flows are already reflected inthe income statement
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