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The Cash Coverage Ratio Is Used to Evaluate The

Question 2

Multiple Choice

The cash coverage ratio is used to evaluate the:


A) liquidity of a firm.
B) speed at which a firm generates cash.
C) length of time that a firm can pay its bills if no additional cash becomes available.
D) ability of a firm to pay the interest on its debt.
E) relationship between the firm's cash balance and its current liabilities.

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