If a bank loan officer were considering a company's loan request,which of the following statements would be CORRECT,other things held constant?
A) The lower the company's inventory turnover ratio,the lower the interest rate the bank should charge.
B) The higher the days sales outstanding ratio,the lower the interest rate the bank should charge.
C) The lower the total debt to total capital ratio,the lower the interest rate the bank should charge.
D) The lower the company's TIE ratio,the lower the interest rate the bank should charge.
E) The lower the current ratio,the lower the interest rate the bank should charge.
Correct Answer:
Verified
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