Question
When the credit rating of a company changes from AA to A, which of the following statement is true? The default probability decreases The cost
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When the credit rating of a company changes from AA to A, which of the following statement is true?
The default probability decreases
The cost of debt decreases
The expected cost of bankruptcy increases
Bond investors demand lower returns
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Financial Accounting A Focus On Interpretation And Analysis
Authors: Richard F Kochanek, A Douglas Hillman
7th Edition
1111061750, 9781111061753
