Junk bonds areaissued by firms with a low debt


  1. junk bonds are
    a. issued by firms with a low debt ratio
    b. usually rated Ba or higher
    c. are issued by firms with a high debt ratio
    d. issued with coupon rates at least 8 percentage points or more above the highest quality issues

 

2. Stock splits are:

a. a sign that the company cannot pay its stock dividend.
b. a sign that the company's stock price is too low.
c. a sign that the company wants to get its stock price to a more desirable trading level.
d. a sign that the company is in need of more financial capital

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Finance Basics: Junk bonds areaissued by firms with a low debt
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