A Rights Issue Is an Example Of

question 4

Multiple Choice

A rights issue is an example of:

• A)a contingent claim that does not affect a company's capital structure.
• B)a put option issued by a company.
• C)a call option issued by a company.
• D)a redeemable preference share.

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Definitions:

Return On Total Assets

measures a company's earnings before interest and taxes (EBIT) relative to its total assets, indicating efficiency in using assets to generate profits.

Times Interest Earned Ratio

A financial metric that measures a company's ability to pay its interest expenses on outstanding debt with its earnings before interest and taxes.

Return On Total Assets

A financial ratio indicating the profitability of a company relative to its total assets, measuring how efficiently a company uses its assets to generate profit.

Year 2

Typically refers to the second year in a given context, such as the second year of a business, investment, or educational program.