AFP
CTP · Question #732
(Topic 8) A company is considering issuing debt in a market environment in which there is a larger than normal spread between high- and low-risk investments. Among several factors, what are the…
The correct answer is D. Flight to quality. See the full explanation below for the reasoning.
Question
- (Topic 8)
A company is considering issuing debt in a market environment in which there is a larger than normal spread between high- and low-risk investments. Among several factors, what are the concerns regarding investor behavior that the treasurer will MOST need to consider?
Options
- AMatching maturity
- BAvailability of collateral
- CCapital structure
- DFlight to quality
How the community answered
(20 responses)- A5% (1)
- B5% (1)
- C20% (4)
- D70% (14)
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