Solved

Titans Electronics Titans Electronics Reports the Following Data for the Past Year

Question 68

Multiple Choice

Titans Electronics
Titans Electronics reports the following data for the past year:
Titans Electronics Titans Electronics reports the following data for the past year:    -Titans Electronics is applying for a new line of credit from their banking partner.To issue the credit,the bank requires the following cutoffs for certain financial ratios: TIE ratio of 4.25 Current Ratio of 1.50 ROA of 5%. What is a likely response from the bank to the application? A)  The bank will have reservations, as the TIE ratio does not meet requirements. B)  The bank will have concerns, as the current ratio does not meet requirements. C)  The bank will have concerns, as the ROA is not high enough. D)  The bank will have concerns, as two or more of the requirements are not met.
-Titans Electronics is applying for a new line of credit from their banking partner.To issue the credit,the bank requires the following cutoffs for certain financial ratios:
TIE ratio of 4.25 Current Ratio of 1.50 ROA of 5%.
What is a likely response from the bank to the application?


A) The bank will have reservations, as the TIE ratio does not meet requirements.
B) The bank will have concerns, as the current ratio does not meet requirements.
C) The bank will have concerns, as the ROA is not high enough.
D) The bank will have concerns, as two or more of the requirements are not met.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents