AFP
CTP · Question #94
(Topic 1) The goal of a successful investor relations program is to ensure:
The correct answer is C. low long-term debt to capital ratio. A lender is evaluating the creditworthiness of a company that has high levels of operating leverage. In determining the debt capacity of the company, the bank would MOST LIKELY
Fundamentals of Testing
Question
- (Topic 1)
The goal of a successful investor relations program is to ensure:
Options
- Ahigh total liabilities to total assets ratio.
- Bhigh debt to tangible net worth ratio.
- Clow long-term debt to capital ratio.
- Dlow times interest earned ratio.
How the community answered
(43 responses)- A7% (3)
- B2% (1)
- C79% (34)
- D12% (5)
Explanation
A lender is evaluating the creditworthiness of a company that has high levels of operating leverage. In determining the debt capacity of the company, the bank would MOST LIKELY
Topics
#investor relations#financial ratios#debt management#capital structure
Community Discussion
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