Which of the following corporate debt ratings are ordered in terms of decreasing market interest rate?

Which of the following corporate debt ratings are ordered in terms of INCREASING market interest rate?a. AAA, A, BB, Cb. A, AAA, BB,C BB, C, A, AAAd. C, BB, A, AAAe. None of the above

Which of the following factors influence how much debt a firm should take on?1 pointIndustry normsThe nature of the firm’s assetsFinancial slackThe overall level of interest ratesAll of the above

Consider the following information regarding corporate bonds:Rating AAA AA A BBB BB B CCCAverage Default Rate 0.0% 0.1% 0.2% 0.45% 2.2% 5.5% 12.2%Recession Default Rate 0.0% 1.0% 3.0% 3.0% 8.0% 16.0% 48.0%Average Beta 0.05 0.05 0.05 0.10 0.17 0.26 0.31CompanyMarketCapitalization($mm)TotalEnterpriseValue ($mm)EquityBetaDebtRatingTaggart Transcontinental $4500 8000 1.1 BBBRearden Metal $3800 7200 1.3 AAAWyatt Oil $2400 3800 0.9 ANielson Motors $1500 4400 1.75 BB1. Your estimate of the debt beta for Taggart Transcontinental would be:A) 0.05B) 0.10C) 0.17D) 1.00

A stock price fall may come from Blank______.Multiple choice question.a decrease in debtan increase in debt

Which of the following ratios is considered a measure of a company’s ability to pay long-term debt?Group of answer choicesprice/earnings ratiotimes-interest-earned ratioacid-test ratioearnings per share of common stock