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Which of the Following Describes the Cash Flow-To-Debt Ratio

Question 4

Multiple Choice

Which of the following describes the cash flow-to-debt ratio?


A) measure of the ability of a firm to cover all debt payments, principal and interest with its cash balance
B) measure of the ability of a firm to cover interest costs with its cash balance
C) an expanded interest coverage ratio
D) measure of the cash flow available over a period of time to cover outstanding debt

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