Equity in a Firm with No Debt Is Called ________

question 54

Multiple Choice

Equity in a firm with no debt is called ________.

• A) levered equity
• B) unlevered equity
• C) risk-free equity
• D) preferred equity

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Definitions:

Government Bonds

Debt securities issued by a government to finance its borrowing requirements, offering a fixed or variable interest rate payable to holders.

Dividends

Payments made by a corporation to its shareholder members from its profits or reserves.

Debentures

A type of debt instrument that is not secured by physical assets or collateral but backed solely by the general creditworthiness and reputation of the issuer.

Indentures

Formal legal agreements, contracts, or documents, especially those that bind someone to work for another for a specified time, often used in the context of bonds or loans.