Answer 42

5/2018 Bookshelf Online: 2018 CFA Program Level I Volume 5 Equity and Fixed Income PRINTED BY: akazemi@ric.edu. Printing is for personal, private use only. No part of this book ma reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. 42. Based on Exhibits 5-7, in comparison to Company X, Company Y has a higher: - A. debt/capital ratio. B. debt/EBITDA ratio C. free cash flow after dividends/debt ratio. 43. Based on Exhibits 5-7, in comparison to Company Y, Company X has greater: A. leverage. B. interest coverage. C. operating profit margin. 44. Credit yield spreads most likely widen in response to: A. high demand for bonds