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A banker considering loaning money to a firm for ten years would most likely prefer the firm have a debt ratio of _______ and a

A banker considering loaning money to a firm for ten years would most likely prefer the firm have a debt ratio of _______ and a times interest earned ratio of _______.

Which combination of the two is best from the standpoint of the bank who is loaning money?

Multiple Choice

  • .50; .75

  • .50; 1.00

  • .45; 1.75

  • .40; .75

  • .40; 1.75

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