Multiple Choice
A borrower's capital is an important factor in credit analysis because...
A) higher amount of capital mitigates moral hazard problems
B) higher amount of capital signals the borrower's confidence about its future cash flows
C) the greater is the amount of capital, the greater is the borrower's loss if it decides to take on riskier projects
D) all of the above
E) b and c only
Correct Answer:
Verified
Correct Answer:
Verified
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