The factors considered by rating agencies on issuing bonds are _________?
Correct answer: D. all of the above
- A. position in industry
- B. overall financial strength
- C. issuer's profitability and liquidity
- D. all of the above
Explanation
Rating agencies assess several aspects of the issuer, including its industry position, overall financial strength, profitability and liquidity. Therefore, all the listed factors are relevant.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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