Simulation Quiz 1 ttps/ Nwwglo-bus.com/users/quaxt(# /simOuiz/commencing Simulat
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Question
Simulation Quiz 1 ttps/ Nwwglo-bus.com/users/quaxt(# /simOuiz/commencing Simulation Quiz 1 Question 3 Previous Which of the following IS one of the factors that determine a company's credit rating? O À The interest coverage ratio (defined as annual operating profit divided by annu expense) O A company's earnings per share O Whether the company has the ability to pay off all outstanding loans within 5 years O The company's average return on shareholders' equity over the most recent three ye O Its debt-to-liabilities ratio Copying, redistributing, or website posting is expressly prohibited and constitutes copyright violation Copyright© 2013 by Glo-Bus Software, Inc. k PreviousExplanation / Answer
Whether the company has the ability to pay off all outstanding loans within 5 years.
Whether the company has the ability to pay off all outstanding loans within 5 years is one of the factors that determine a company's credit rating. In other words, this is called a company’s credit risk which plays the biggest factor in a company’s credit rating.