Changes in a Firm's Bond Rating Affect Its Ability To

question 105

Multiple Choice

Changes in a firm's bond rating affect its ability to:

• A)claim deductions in tax liability computation.
• B)procure raw material in sufficient quantity for manufacturing processes.
• C)increase the coupon rate on bonds issued to investors.
• D)borrow long-term capital as well as the cost of such funds.
• E)exercise a call provision on its bonds.

---

Definitions:

Unimportant

Lacking in significance, value, or impact; not important.

Omitted

Refers to something that has been left out or excluded, either intentionally or unintentionally.

Indirect Request

A polite or less direct method of asking for something, often intended to be more courteous.

Presentation

A formal display or exhibition of information or ideas, typically involving speaking before an audience and sometimes using visual aids.