Question
Some of Souter Corp.'s ratios are given below: [Earnings from continuing operations before interest and taxes] / [Gross interest incurred before subtracting (1) capitalized interest
Some of Souter Corp.'s ratios are given below: [Earnings from continuing operations before interest and taxes] / [Gross interest incurred before subtracting (1) capitalized interest and (2) interest income] : 1.95 [Long-term debt plus current maturities, commercial paper, and other short-term borrowings] / [Long-term debt plus current maturities, commercial paper, and other short-term borrowings + shareholders equity (including preferred stock) plus minority interest] : 38.67 What rating would you expect from Standard & Poors rating for Souter Corp.'s bonds?
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