When Modeling the Issuance of Debt,the Maximum Cardinality from Disburse

question 47

Multiple Choice

When modeling the issuance of debt,the maximum cardinality from Disburse Cash to Issue Debt is 1 because

• A)interest is usually only paid at the maturity date.
• B)one check is written for the total interest due.
• C)The Issue Debt event is not related to Disburse Cash event;cash is received,not given.
• D)The minimum cardinality would be 1,but the maximum cardinality should be N.

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Definitions:

Future

Financial contracts obligating the buyer to purchase an asset or the seller to sell an asset, such as a physical commodity or a financial instrument, at a predetermined future date and price.

Clientele Effect

The theory that a company's stock price changes according to the demands and preferences of its existing shareholder base.

Dividend Policy

A company's approach to distributing profits back to its shareholders through dividends.

Capital Gains

The increase in value of an asset or investment over its purchase price, which becomes realized upon the sale of the asset.