Examlex

Solved

A Low Debt Ratio Is Safer Than a High Debt

question 61

True/False

A low debt ratio is safer than a high debt ratio because a company with few liabilities has low required debt payments.


Definitions:

Quoted Price

The publicly stated cost or value of a stock, commodity, or financial instrument.

Coupon Rate

The yearly rate of interest that the entity issuing a bond pays to its investors, represented as a proportion of the bond's nominal value.

Yield

Yield is the income returned on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost.

Price

The financial sum anticipated, obliged, or handed over in exchange for an item.

Related Questions