Debentures Always Have Specific Assets of the Issuing Company Pledged

question 126

True/False

Debentures always have specific assets of the issuing company pledged as collateral.

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Definitions:

Operating Cash Flow

The sum of money produced through a company's regular business activities.

EBIT

Earnings Before Interest and Taxes represents a company's profitability that accounts for all costs except for interest and taxes.

Cash Flows

The total amount of money being transferred into and out of a business, affecting its liquidity.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health and operational efficiency.