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How Does Knowledge of the Rate of Payback of Debt

Question 36

Multiple Choice

How does knowledge of the rate of payback of debt principal help the analyst in assessing a governmental entity's financial position?


A) It is a determinant of the entity's operating efficiency
B) It is a helpful substitute for the long-term debt to equity ratio
C) It is a useful indicator of financial flexibility and fiscal stress
D) It helps to explain the debt service funded ratio

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