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

question 135

Multiple Choice

Because 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 thus the dividends it pays each year.
• B)cost of using such debt and thus 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.

---

Definitions:

Problem-solution

A framework for addressing customer needs by identifying a problem they face and proposing a specific solution that a product or service can provide.

Problem-solution

A marketing strategy that illustrates a problem faced by the target audience and demonstrates how the company's product or service offers an effective solution.

Technical Product

A product characterized by specialized features, requiring specific knowledge or expertise to use effectively.

Corporate Insurance

A type of insurance designed to protect businesses from potential losses due to unforeseen circumstances, including property damage, liability claims, and business interruption.