Which of the Following Factors Are Included in the Rating

question 91

Multiple Choice

Which of the following factors are included in the rating analysis of a corporate bond?
I. the issue's indenture provisions
II. the liquidity position of the issuing company
III. the issuing company's relative debt burden
IV. the stability of the company's earnings

• A) I and II only
• B) I, II and III only
• C) II, III and IV only
• D) I, II, III and IV

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Definitions:

Monopoly

is a market structure characterized by a single seller, selling a unique product in the market without any direct competition.

Franchise

A business model that allows one to use another's established brand and operating systems in exchange for a fee and ongoing royalties.

Cable Television

A system for delivering television programming to viewers via radio frequency signals transmitted through coaxial cables or light pulses through fiber-optic cables.

Marginal Revenue

The extra profit gained from selling one more unit of a product or service.