Introduction to Credit - How \& Why Credit is Used There are a vanety of reasons why a management team may wish to use debt in its capital sinucture. Which of the following statements are true about using debt as a funding source? (select all that apply) Using debt as a funding source (as opposed to equity) will usually improve a companys financal rabos Gredit can be structured such that repayment aligns with the cash generated by the underly In generaldebt is more expentive than equity butit provides greater flexibilty Current assets are usually financed uning current lukwities thike operating credit) The Credit Process \& Analysis Fundamentals - Financial Ratios Understanding how debt affects a compainys bey financtal tatios is imperative for credit professionals. From the perspective of a lender, which of the following statements are NOT tue about a borrower's financial ratios? A highet debt-to-equ ty rabo is better than alower debt-to-equty ratio A higher fixed charge coverage ratio is better than a lower fixed charge coverage fatio A higher debt-service coverage ratio is better than a lower debt-service coverage rabo A higher current rato is better than a lower aurrentratio 14 Types \& Features of Credit - Total interest Consider ations There are mamy considerations when it comes to creating a custom Toan structure. Atter buiding out amoruzation schedules, which of the following statements is NOT true? If a chent wants a vanable interest rate, the loan hould be stuctured a anequal civmentlosn