Financial Management - Study Mode
[#891] Which of the following appearing in the balance, generates tax advantage and hence affects the c, structure decision?
Correct Answer
(B) Long-term Debt
[#892] Relationship between change in sales and change in EPS is measured by:
Correct Answer
(B) Combined leverage
[#893] Yield of interest rate which is below than coupon rate, this yield is classified as
Correct Answer
(B) yield to call
Explanation
Solution: Yield of interest rate which is below than coupon rate, this yield is classified as yield to call. Yield to call (YTC) is a financial term that refers to the return a bondholder receives if the security is held until the call date, before the debt instrument reaches maturity.
[#894] An inflation rate including in quoted interest rate on security, is inflation rate
Correct Answer
(A) expected over security life
Explanation
Solution: An inflation rate including in quoted interest rate on security, is inflation rate expected over security life. Inflation is measured in a variety of ways depending upon the types of goods and services considered and is the opposite of deflation which indicates a general decline occurring in prices for goods and services when the inflation rate falls below 0 percent.
[#895] Market in which bonds are traded over-the-counter than in an organized exchange is classified as
Correct Answer
(D) bond markets
Explanation
Solution: Market in which bonds are traded over-the-counter than in an organized exchange is classified as bond markets. The bond market (also debt market or credit market) is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market.