Of the Various Dividends Types the Two Most Common Types

question 118

Multiple Choice

Of the various dividends types the two most common types in practice are

• A) cash and large stock.
• B) cash and property.
• C) cash and small stock.
• D) property and small stock.

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Definitions:

Floating-rate Debt

Floating-rate Debt refers to loans or bonds with a variable interest rate, which adjusts periodically based on a benchmark interest rate or index.

LIBOR

The London Interbank Offered Rate, which is a benchmark rate that some of the world’s leading banks charge each other for short-term loans.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, including loans, bonds, or credit lines.

Floating-rate Debt

A form of debt where the interest rate varies over time based on a benchmark interest rate or index.