The interest rate a company pays on 1-year, 5-year, and 10-year loans is a partly determined by 1.whether its cash flow from operations as a percentage of global revenues for the past two years is above 15%. 2.the length of the term over which repayment is scheduled to occur--the interest rate is lowest for 1-year loans and highest for 10-year loans. 3.its current ratio and prior-year cash flow from operations as a percentage of prior-year global revenues. 4.its current ratio, its its debt-equity ratio, and whether its cash flow from operations as a percentage of global revenues for the past two years is above 10%. 5.its prior-year market share of global footwear sales and whether the company has been profitable for three consecutive years.
The interest rate a company pays on 1-year, 5-year, and 10-year loans is a partly determined by 1.whether its cash flow from operations as a percentage of global revenues for the past two years is above 15%. 2.the length of the term over which repayment is scheduled to occur--the interest rate is lowest for 1-year loans and highest for 10-year loans. 3.its current ratio and prior-year cash flow from operations as a percentage of prior-year global revenues. 4.its current ratio, its its debt-equity ratio, and whether its cash flow from operations as a percentage of global revenues for the past two years is above 10%. 5.its prior-year market share of global footwear sales and whether the company has been profitable for three consecutive years.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The interest rate a company pays on 1-year, 5-year, and 10-year loans is a partly
determined by
1.whether its cash flow from operations as a percentage of global revenues for
the past two years is above 15%.
2.the length of the term over which repayment is scheduled to occur--the
interest rate is lowest for 1-year loans and highest for 10-year loans.
3.its current ratio and prior-year cash flow from operations as a percentage of
prior-year global revenues.
4.its current ratio, its its debt-equity ratio, and whether its cash flow from
operations as a percentage of global revenues for the past two years is above
10%.
5.its prior-year market share of global footwear sales and whether the company
has been profitable for three consecutive years.
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