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Changes in a Firm's Bond Rating Affect Its Ability To

Question 105

Multiple Choice

Changes in a firm's bond rating affect its ability to:


A) claim deductions in tax liability computation.
B) procure raw material in sufficient quantity for manufacturing processes.
C) increase the coupon rate on bonds issued to investors.
D) borrow long-term capital as well as the cost of such funds.
E) exercise a call provision on its bonds.

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