Which of the following trends can be unfavorable from the viewpoint of a bondholder? a. The issuing company’s debt ratio is steadily declining. b. The issuing company’s interest coverage ratio is steadily rising. c. Market interest rates are steadily rising. d. The issuing company’s net cash flow from operating activities is steadily increasing.
Which of the following trends can be unfavorable from the viewpoint of a bondholder? a. The issuing company’s debt ratio is steadily declining. b. The issuing company’s interest coverage ratio is steadily rising. c. Market interest rates are steadily rising. d. The issuing company’s net cash flow from operating activities is steadily increasing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following trends can be unfavorable from the viewpoint of a bondholder?
a. The issuing company’s debt ratio is steadily declining.
b. The issuing company’s interest coverage ratio is steadily rising.
c. Market interest rates are steadily rising.
d. The issuing company’s net
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