Variable-Rate Loans

question 115

Multiple Choice

Variable-rate loans

• A)usually have rate caps that prevent them from varying too much.
• B)always adjust every month.
• C)are never a better option than fixed-rate loans.
• D)all of the above.

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Definitions:

Price-Earnings Ratio

Price-earnings ratio is a valuation metric comparing a company's current share price relative to its per-share earnings, used to gauge if a stock is over or undervalued.

Earnings Per Share

A measure of a company's profitability, calculated as the profit available to common shareholders divided by the average number of common shares outstanding.

Working Capital

The variance between a business's present assets and its present debts, which demonstrates the firm's liquidity.

Common Stock

A type of equity security that represents ownership in a corporation, with rights to vote on corporate matters and receive dividends.