The Unfunded Debt of a Firm Is Generally Understood to Mean

question 31

Multiple Choice

The unfunded debt of a firm is generally understood to mean the firm's:

• A)preferred stock.
• B)debts that mature in more than one year.
• C)debentures.
• D)debts that mature in less than one year.
• E)secured debt.

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Definitions:

Dividend

A portion of a company's earnings that is paid to shareholders, usually on a quarterly basis, as a reward for owning the stock.

Liability

A company's financial debt or obligations that arise during the course of its business operations, required to be settled over time.

Stock Split

A corporate action that increases the number of shares in a company, leading to a decrease in the price per share while keeping the market capitalization the same.

Shares Outstanding

The total number of company's shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.