Drafts That Have Been Accepted by Banks Become

question 35

Multiple Choice

Drafts that have been accepted by banks become:

• A) clean drafts.
• B) nonmarketable.
• C) banker's acceptances.
• D) none of the above

---

Definitions:

Debt-Equity Ratio

Debt-equity ratio is a financial ratio indicating the relative proportion of shareholders’ equity and debt used to finance a company’s assets.

External Financing

This refers to funds raised from outside the company, including loans, credit, or investments from external entities, to support the company's activities.

Capital Structure

The mix of debt, equity, and other financing methods used by a company to fund its operations and growth.

After-Tax Cost

After-tax cost refers to the expense of a transaction or investment after accounting for the effects of taxes, providing a clearer picture of the true financial impact.