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Debt-service payments are the sum of the following: A) Dividend payments + Equity buybacks. B) Preferred dividend payments + common-equity dividend payments. C) Principal payments

Debt-service payments are the sum of the following:

A) Dividend payments + Equity buybacks.

B) Preferred dividend payments + common-equity dividend payments.

C) Principal payments on debt + Interest payments on the same debt.

D) Interest payments on convertible debt + Preferred dividend payments.

The risk-free rate is the rate of interest on government security having no _________.

A) Default risk

B) Inflation risk

C) Interest rate risk

D) Exposure to any risk

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