Options
- A
Relevant only to equity shareholders with debt
-
Relevant to equity shareholders as company must service debt first
Correct answer
- C
Not relevant to equity shareholders
- D
None of the above
Why this is the answer
Equity holders’ returns depend on the company meeting debt obligations. A high credit rating indicates lower default risk, benefiting equity investors indirectly.
Test yourself for real
Take a full NISM Series XV mock test.
Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.