Assume You Are a Banker Who Has Loaned Money to a Firm,but

Multiple Choice

Assume you are a banker who has loaned money to a firm,but that firm is now facing increased competition and reduced cash flows.Which one of the following ratios would you most closely monitor to evaluate the firm's ability to repay its loan?

A) current ratio
B) debt-to-equity ratio
C) times interest earned ratio
D) times burden covered ratio
E) None of the above.