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Assume that company X carries 100m of debt on which it pays a 10% annual rate. Which of the following statements is correct? a.if the

Assume that company X carries 100m of debt on which it pays a 10% annual rate. Which of the following statements is correct?

a.if the company generates annual operating cash flows below 100m, it will fail to meet its interest payment

b.If annual operating cash flows are above 10m, the sum of earnings and depreciation must be positive

c.The company is insolvent unless it generates annual operating cash flows above 50m.

d.If annual operating cash flows are 10m, the company has a debt to equity ratio equal to one.

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