A Small Country Is a Net Foreign Borrower

question 86

Multiple Choice

A small country is a net foreign borrower.Its real interest rate without foreign borrowing is ________ the world real interest rate.

• A)higher than
• B)equal to
• C)lower than
• D)not comparable to
• E)either higher than or equal to

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Definitions:

Dividend Yield Ratio

This ratio indicates the annual dividend payments of a company as a percentage of its current share price.

Earnings per Share

A financial ratio indicating the portion of a company's profit allocated to each outstanding share of common stock, showing the company's profitability per share.

Debt-to-equity Ratio

A financial metric indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Times Interest Earned Ratio

A financial metric that compares a company's operating income to its interest expenses, indicating how well the company can cover its interest obligations with its earnings.