An Equity Swap Involves the Exchange of Dividend Payments for Payments

question 22

True/False

An equity swap involves the exchange of dividend payments for payments linked to the degree of change in a stock index.

---

Definitions:

Total Revenue

The amount of money generated from sales of goods or services before any expenses are subtracted.

Variable Costs

Costs that change in proportion to the level of production or sales activities of a business.

Fixed Costs

Business expenses that remain constant regardless of the level of goods or services produced.

Unit Variable Cost

The financial outlay linked to the creation of one more unit of a product.