As a Bond's Rating Serves as an Indicator of Its

question 79

Multiple Choice

As a bond's rating serves as an indicator of its default risk, the rating has a direct, measurable influence on the firm's:

• A) earnings per share and dividend payments.
• B) cost of using such debt and the bond's interest rate.
• C) ability to procure raw material for production.
• D) tax liability to the federal government.
• E) current assets and the bond's maturity value.

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Definitions:

Discrimination

Discriminatory behavior towards various groups based on race, age, gender, or disability, which is unfair and biased.

Stereotyping

The act of assigning identical characteristics to any person in a group regardless of the actual variation among members of that group.

Social Scripts

Prescribed behaviors and expectations for individuals within specific social situations or roles, guiding how people should act and interact in various contexts.

Cognitive Dissonance

The mental unease felt by a person who simultaneously possesses multiple conflicting beliefs, ideas, or values.