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Question ments 300 hboard You want to do a stress-test of CFR's ability to pay its interest expenses. In the Income Statement, you assume

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Question ments 300 hboard You want to do a stress-test of CFR's ability to pay its interest expenses. In the Income Statement, you assume the interest expenses Increase from $50 thousand to $250 thousand, while holding all data above the interest expenses in the Income Statement equal. In such a scenario, can CFR pay its interest expenses ($250 thousand) using its before-tax operating cash flow? O Yes, because before tax operating cash Bow is measured by its sales, which is greater than interest expenses Yes, because it before tax operating cash tow is measured by its EBITDA, which is greater than interest expenses O No, because its before-tax operating cash flow is measured by its net income, which is lower than interest expenses O No, because its before tax operating cash flow is measured by its retained earnings as shown in the Balance Sheet, which is lower than interest expenses D Question 4 [This question is worth 1 point) 1 pts Following the above question. How would the hypothetical $250 thousand interest expenses affect the firm's financial management strategies compared with the original $50 thousand interest expenses? O The firm could ste manage to pay is $250 thousand interest expenses this year but in the long term & hight need to find addbonal funding to Inance is fed assas O The firm could s manage to pay is $250 thousand interest expenses this year, but in the long term it might need to find additional funding to Enance its working capital O The fem would default on interest payment unless it obtained immediate debt or equity financing The firm would default on interest payment unless it obtained sax deferral

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