Which of the Following Factors Would Increase the Likelihood That

question 38

Multiple Choice

Which of the following factors would increase the likelihood that a company would call its outstanding bonds at this time?

• A) a provision in the bond indenture lowers the call price on specific dates, and yesterday was one of those dates.
• B) the flotation costs associated with issuing new bonds rise.
• C) the firm's cfo believes that interest rates are likely to decline in the future.
• D) the firm's cfo believes that corporate tax rates are likely to be increased in the future.
• E) the yield to maturity on the company's outstanding bonds increases due to a weakening of the firm's financial situation.

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Definitions:

Ethical Climate

describes the shared perceptions of what is ethically correct behavior and how ethical issues should be addressed within an organization or community.

Organization's Ethical Practices

Refers to the policies, standards, and behaviors that guide moral decisions and actions within a business entity.

Dynamic Environment

A constantly changing and evolving setting in which an organization operates, often characterized by unpredictable and rapid changes.

Financial Performance

The measure of an organization's profitability, revenue, expenses, and overall financial health.