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A Toronto Banker Considering Loaning Money to a Firm for Ten

Question 226

Multiple Choice

A Toronto banker considering loaning money to a firm for ten years would most likely prefer the firm have a debt ratio of _____ and a times interest earned ratio of _____.


A) .75;.75
B) .50; 1.00
C) .45; 1.75
D) .40; 2.50
E) .35; 3.00

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