A Sinking Fund Is Useful to a Corporation Because

question 2

Multiple Choice

A sinking fund is useful to a corporation because:

• A)the corporation does not have to worry about paying the bondholders.
• B)it provides the corporation with the option to buy the bonds back at the lower of face value or market price.
• C)the payments to the sinking fund are not necessary when the firm is in financial difficulty.
• D)they are simple and easy to monitor.
• E)None of the above.

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Definitions:

Stem-and-Leaf Diagram

A data display method that organizes data points by place value, allowing for quick visual interpretation of the data distribution.

Skewed

A description of a distribution of data that is not symmetric and has a long tail on one side of the peak.

Ages

Refers to the length of time that an individual, object, or entity has existed.

Histogram

A graphical representation of data using bars of different heights to show the frequency of values in intervals.