单选题

Pop Co is switching from using mainly long-term fixed rate finance to fund its working capital to using mainly short-term variable rate finance.
Which of the following statements about the change in Pop Co’s working capital financing policy is true?

A、 Finance costs will increase
B、 Re-financing risk will increase
C、 Interest rate risk will decrease
D、 Overcapitalisation risk will decrease

【正确答案】 B

【答案解析】

Pop Co is moving to an aggressive funding strategy which will increase refinancing risk.