__________ Are Unsecured Obligations That Are Not Tied to Specific

question 48

Multiple Choice

__________ are unsecured obligations that are not tied to specific assets for collateral.

• A) Bearer bonds
• B) No-load stocks
• C) Penny stocks
• D) Junk bonds

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Definitions:

Capital Structure

The mix of different forms of capital, such as debt, equity, and hybrid securities, used by a company to fund its operations and growth.

M&M Proposition I

A theory stating that the value of a leveraged firm is the same as the value of an unleveraged firm provided there are no taxes, bankruptcy costs, and asymmetric information.

Debt-Ratio

is a financial metric that compares a company's total debt to its total assets, showing how much of the company's assets are financed by debt.