Question 11 1 pts If a bank loan officer were considering a company's request for a loan, which of the following statements would you consider to be CORRECT? Other things held constant, the lower the current ratio, the lower the interest rate the bank would charge the form The lower the company's TIE coverage ratio, other things held constant, the lower the interest rate the bank would charge the firm. Other things held constant, the higher the debt ratio, the higher the interest rate the bank would charge the form. Other things held constant, the higher the debt ratio, the lower the interest rate the bank would charge the firm Question 12 1 pts If the CEO of a large, diversified, firm were filling out a fitness report on a division manager (i.e.. "grading" the manager), which of the following situations would be likely to cause the manager to receive a better grade? In all cases, assume that other things are held constant. The division's inventory turnover is 8, whereas the average for its competitors is 6. The division's total assets turnover ratio is below the average for other firms in its industry The division's days in receivables is 40, whereas the average for its competitors is 30. The division's debt ratio is above the average for other firms in the industry, Question 13 1 pts If a company's days in receivables (accounts receivable/daily credit sales) is higher than the industry average then the company may be: O allowing its customers too much time to pay their bills O too tough in collecting its accounts O enforcing credit conditions upon its customers which are too stringent O allowing inventory to sit on the shelves for too long