Which cash coverage ratio would a lender prefer its borrower have?
A)−1.5
B)−0.5
C)0
D)0)5
E)1)5

Name: Which cash coverage ratio would a lender prefer its borrower have? A)−1.5 B)−0.5 C)0 D)0)5 E)1)5
Brand: Quizplus
Rating: 4.8 (43 reviews)

Question

Quizplus · Accepted Answer

A lender would prefer its borrower to have a cash coverage ratio greater than 1, meaning the business has enough cash to cover its debt payments. Option E with a cash coverage ratio of 1.5 is the only choice that meets this criteria.

Which Cash Coverage Ratio Would a Lender Prefer Its Borrower