If an analyst wishes to analyze the ability of a company's operating activities to fund its level of investment in property,plant,and equipment,a good measure would be the:

Question

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The measure that would best analyze the ability of a company's operating activities to fund its level of investment in property, plant, and equipment would be the capital acquisitions ratio. This ratio compares the cash inflows from operating activities to the cash outflows for capital expenditures, which includes investments in property, plant, and equipment. By doing so, it provides insight into whether a company's cash generated from operating activities can adequately finance its investments in long-term assets. The other options, quality of income ratio, cash coverage ratio, and times interest earned ratio, are measures that analyze a company's ability to meet its debt obligations and do not directly relate to evaluating the funding of investments in property, plant, and equipment.

If an Analyst Wishes to Analyze the Ability of a Company's