Junk Bond Market Financing Became More Important in Mergers and Corporate

question 18

Multiple Choice

Junk bond market financing became more important in mergers and corporate restructurings because:

• A) firms can issue only limited amounts of debt.
• B) there was a large supply of junk bonds.
• C) the marketability of junk bonds increased.
• D) this permitted firms to have much higher debt-equity ratios.

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Definitions:

Shaping

In learning theory, the gradual building of complex behavior patterns through reinforcement of successive approximations of the target behavior.

Expressive Vocabulary

The set of words a person can actively use in speech or writing.

Holophrase

A single word that is used to express complex meanings.

Naming Explosion

A rapid increase in vocabulary that typically occurs in early childhood.