According to Moody's,bonds with Extremely Poor Prospects of Attaining Any

question 50

Multiple Choice

According to Moody's,bonds with extremely poor prospects of attaining any real investment standing are rated:

• A) A.
• B) B.
• C) C.
• D) E.
• E) F.

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Definitions:

Capital Structure

The mix of various types of debt and equity that a company uses to finance its operations.

Tax Rate

The proportion of one's earnings or company profits that is required to be paid as tax.

Degree Of Financial Leverage (DFL)

A measure that evaluates the sensitivity of a company's earnings per share to fluctuations in its operating income, indicating financial risk.

Interest

The return on a debt investment.