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Sherman Industries, Inc. applied for a loan to finance a major equipment purchase. The loan officer calculated Sherman's debt-to-asset ratio as part of the loan

Sherman Industries, Inc. applied for a loan to finance a major equipment purchase. The loan officer calculated Sherman's debt-to-asset ratio as part of the loan approval process. What is the likely use of this ratio? Select one: A. To evaluate Sherman's liquidity position B. To estimate Sherman's next year's total interest expense C. To screen the loan as acceptable or unacceptable D. To forecast Sherman's upcoming year's net income or loss

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