Which Three of the Following Are Advantages of Eurobonds as a Source

question 15

Multiple Choice

Which three of the following are advantages of Eurobonds as a source of finance for firms?

• A) Often a lower rate of return is required by lenders than for domestic bonds.
• B) They are relatively safe instruments to hold, as ownership rights of bonds are registered with the company.
• C) Large loans for long periods of time are available.
• D) They provide the possibility of hedging interest rate and exchange rate risk.

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Definitions:

Batches

Quantities of goods or materials processed or produced at one time during manufacturing.

Overhead Cost

Indirect expenses related to manufacturing or production, which are not directly tied to a specific product, such as rent, utilities, and salaries of managers.

Activity Rates

are used in activity-based costing to allocate costs to products or services based on specific activities requiring the costs, like inspection or setup.

Activity-Based Costing

An approach to costing that apportions overhead and indirect charges to particular activities, ensuring more accurate cost determinations for products or services.