Assume That You Are Considering Purchasing Some of a Company's

question 73

Multiple Choice

Assume that you are considering purchasing some of a company's long-term bonds as an investment.Which of the company's financial statement ratios would you probably be most interested in?

• A)Debt to assets ratio
• B)Debt to equity
• C)Plant assets to long-term liabilities
• D)All of these answers are correct.

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Definitions:

Defensive Driving

Practice of using driving strategies that minimize risks and potential for accidents by anticipating dangerous situations.

Interest Rate

is the cost of borrowing money, expressed as a percentage of the principal, that lenders charge borrowers or the rate earned on deposits.

Expected Returns

Expected returns are the anticipated profit or loss from an investment, reflecting the potential financial gains or risks based on historical data and market trends.

Investment Demanded

Investment demanded refers to the total amount of spending by businesses and individuals on capital goods like machinery, buildings, and technology, to increase future productivity.