Examlex
Which of the following statements) describe the principal reasons) why investors and
creditors use financial statement analysis?
1. To assess the risks associated with expected returns
2. To establish recommended dividend and interest payments
3. To evaluate top and middle level management
4. To predict the amount of expected returns
Interest Rates
The percentage of a sum of money charged for its use, often expressed as an annual percentage.
Premium
The amount paid for an insurance policy or an extra charge for an enhanced or optional service over and above the basic.
Market Value
The contemporary selling or buying price of a service or asset in the market.
Maturity Risk
The risk associated with the uncertainty of returns due to changes in interest rates as an investment approaches its maturity date.
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