The cash flow adequacy ratio:
A) measures a company's ability to generate sufficient cash flow from investing to cover debt repayments.
B) measures a company's ability to generate sufficient cash flows from operations to cover capital expenditures and debt repayment.
C) measures a company's ability to generate sufficient cash flows from operations to cover capital expenditures, inventory additions, and cash dividends.
D) measures a company's ability to generate sufficient cash flows from operations to cover capital expenditures, debt repayment, and dividends.
Correct Answer:
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