From a Creditor's Point of View, the Higher the Debt

question 260

True/False

From a creditor's point of view, the higher the debt to assets ratio, the lower the risk that the company may be unable to pay its obligations.

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Definitions:

NASDAQ Composite

An index of over 2,500 stocks listed on the NASDAQ stock exchange, representing a wide range of industries.

S&P 500

An index comprising 500 of the largest companies listed on stock exchanges in the United States.

DJIA

The Dow Jones Industrial Average (DJIA) is a stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States, often used as an indicator of the overall health of the US stock market.

Tax Free Municipal Bond

A debt security issued by a state, municipality, or county to finance its capital expenditures, exempt from federal taxes and, in some cases, state and local taxes.