CSI CSC1 Exam With Confidence Using Practice Dumps

Using Moody’s long-term rating scale,Caais assigned to obligations that are speculative and subject to very high credit risk. This rating indicates that the issuer is highly vulnerable to adverse conditions, though it has not yet defaulted.

C (Option A):Indicates obligations that are in default.

B (Option B):Reflects obligations with speculative elements and higher risk than investment-grade ratings.

Ba (Option C):Denotes speculative-grade credit but with lower risk compared to Caa.

Warrants are securities issued by a company to existing shareholders, giving them the right to purchase additional shares at a predetermined price, often over a longer period (years). Warrants are typically used as an incentive or as part of financing arrangements.

This differs from rights, which are similar but usually have a shorter exercise period, often weeks.

Study Document References:

Volume 1, Chapter 8:Warrants and Rights, discussing their features and purposes​​.

Retained earningsrepresent the portion of a company’s annual profit that is retained and not paid out as dividends. It is used to reinvest in the business or pay down debt.

B. Comprehensive incomeincludes all changes in equity except those from owner contributions or distributions.

C. Share capitalrefers to funds raised by issuing shares.

D. Gross profitis revenue minus the cost of goods sold, not the portion retained.

References:Volume 1, Chapter 11 ("Corporations and Their Financial Statements")​.