Assume that Williams Corp is financed with a heavy reliance on short-term debt and short-term rates have increased. How do these facts impact the interest expense, net income, and financial risk for Williams Corp?
|
Interest expense |
Net income |
Financial risk |
|
|
a. |
Decreases |
Decreases |
Decreases |
|
b. |
Increases |
Decreases |
Increase |
|
c. |
Decrease |
Increases |
Increases |
|
d. |
Increases |
Decreases |
Decreases |