Which of the Following Statements Is CORRECT

question 12

Multiple Choice

Which of the following statements is CORRECT?

• A) All else equal,secured debt is more risky than unsecured debt.
• B) The expected return on a corporate bond must be greater than its promised return if the probability of default is greater than zero.
• C) All else equal,senior debt has more default risk than subordinated debt.
• D) A company's bond rating is affected by its financial ratios but not by provisions in its indenture.
• E) Under Chapter 7 of the Bankruptcy Act,the assets of a firm that declares bankruptcy must be liquidated,and the sale proceeds must be used to pay off claims against it according to the priority of the claims as spelled out in the Act.

Recognize the potential impacts of prenatal substance exposure on fetal and infant development.

Gain knowledge on teratogens, their effects, and principles of teratology.

Identify the specific consequences of fetal alcohol syndrome and spectrum disorders.

Understand global disparities in birth defects and the leading causes of developmental disabilities.

---

Definitions:

Marketable Securities

Temporary investment of “extra” cash by organizations for up to one year in U.S. Treasury bills, certificates of deposit, commercial paper, or Eurodollar loans.

Retained Earnings

Earnings after expenses and taxes that are reinvested in the assets of the firm and belong to the owners in the form of equity.

Junk Bonds

A special type of high interest rate bond that carries higher inherent risks.