Individual Borrowers - Whether They Be Governments or Companies -

question 13

Multiple Choice

Individual borrowers - whether they be governments or companies - possess their own individual credit rating, the market's assessment of their ability to repay debt in a timely manner. These credit assessments influence all the following EXCEPT:

• A) cost of capital.
• B) access to capital.
• C) credit risk premium.
• D) risk-free rate.

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Definitions:

News Release

An official statement issued to the media and the public to announce significant or notable information about a company, government, or organization.

Holder-of-record Date

The specified date set by a corporation by which one must be registered as a shareholder to be entitled to receive dividends or participate in certain corporate events.

Stock Rights

Opportunities given to existing shareholders to purchase additional shares of the company's stock, typically at a discount, before the stock is offered to the public.

Date of Record

The date set by a company on which the shareholders must be registered to be eligible for dividends or other benefits.