Question
You want to lend money to a small business in your town as an investment. You have 5 businesses that you are considering. Which of
You want to lend money to a small business in your town as an investment. You have 5 businesses that you are considering. Which of the following presents the lowest risk to you the lender?
A firm with a debt-equity ratio of .7 and an interest coverage ratio of 4.
A firm with a debt-equity ratio of .3 and an interest coverage ratio of 5.
A firm with a debt-equity ratio of .7 and an interest coverage ratio of 2.
A firm with a debt-equity ratio of 5 and an interest coverage ratio of .3.
A firm with a debt-equity ratio of 2 and an interest coverage ratio of .7
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Healthcare Finance An Introduction To Accounting And Financial Management
Authors: Louis C. Gapenski
4th Edition
1567932800, 978-1567932805
