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A Banker Is Analyzing a Company That Operates in the Automotive

Question 89

Multiple Choice

A banker is analyzing a company that operates in the automotive industry.Which of the following will likely be the banker's most important consideration when determining whether the company should receive a loan?


A) The automotive industry faces political pressures regarding environmental regulation.
B) Inflation has been consistently high for several years.
C) The company has state-of-the-art automated equipment that enhances its operating efficiency.
D) The company has a large amount of interest payments related to other outstanding loans.

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