Which of the following statement about bond ratings is TRUE?

✅ C. Non-normal cash flow

Option A : Normal costs Option B : Non-normal costs Option C : Non-normal cash flow Option D : Normal cash flow Option E : Correct Answer : Non-normal cash flow Read more

✅ D. Par value

Option A : Bond value Option B : Per value Option C : State value Option D : Par value Option E : Correct Answer : Par value Read more

✅ C. High growth prospect

Option A : Low dividends paid Option B : High risk prospect Option C : High growth prospect Option D : High marginal rate Option E : Correct Answer : High growth prospect Read more

✅ C. Evaluate projects

Option A : Negative projects Option B : Relative projects Option C : Evaluate projects Option D : Earned projects Option E : Correct Answer : Evaluate projects Read more

✅ D. All of the given options

Option A : Operating cash flow Option B : Capital spending Option C : Change in net working capital Option D : All of the given options Option E : Correct Answer : All of the given options Read more

✅ C. Inflation effects

Option A : Equity effects Option B : Debt effects Option C : Inflation effects Option D : Opportunity effects Option E : Correct Answer : Inflation effects Read more

✅ C. Cost of capital is used

Option A : Component cost is used Option B : Common stock value is used Option C : Cost of capital is used Option D : Asset valuation is used Option E : Correct Answer : Cost of capital is used Read more

✅ B. More than its par value

Option A : Seasoned par value Option B : More than its par value Option C : Seasoned par value Option D : At par value Option E : Correct Answer : More than its par value Read more