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Assume that you are a Loan Officer at Capital One Bank in New Orleans. Company ABC wants to get a ten - year ( long
Assume that you are a Loan Officer at Capital One Bank in New Orleans. Company ABC wants to get a tenyear longterm loan from your bank. Company DEF wants to get a tenyear longterm loan from your bank. Company HEE also wants to get a tenyear longterm loan from your bank. Company JIL wants to get a tenyear longterm loan from your bank. The TOTAL DEBT RATIO for Company ABC is and the TIMES INTEREST EARNED RATIO for Company ABC is for the year.
The TOTAL DEBT RATIO for Company DEF is and the TIMES INTEREST EARNED
RATIO for Company DEF is for the year.
The TOTAL DEBT RATIO for Company HEE is and the TIMES INTEREST EARNED RATIO for Company HEE is for the year.
The TOTAL DEBT RATIO for Company JIL is and the TIMES INTEREST EARNED RATIO for Company JIL is for the year.
The Current Ratio for Company ABC is for the year. The Current Ratio for Company DEF is for the year. The Current Ratio for Company HEE is for the year. The Current Ratio for Company JIL is for the year.
Assume that you ONLY HAVE ENOUGH money to lend to one company. Which company would you lend to
A Company ABC
B Company DEF
C Company HEE
D Company JIL
E You are indifferent between Company DEF and Company HEE
F You are indifferent amongst Company ABC and Company DEF and Company HEE
G You are indifferent amongst all four companies
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