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ARADHYA MISHRA
on Dec 08, 2024

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A firm with a low rating from the bond-rating agencies would have

A) a low times-interest-earned ratio.
B) a low debt-to-equity ratio.
C) a low quick ratio.
D) a low debt-to-equity ratio and a low quick ratio.
E) a low times-interest-earned ratio and a low quick ratio.

Times-Interest-Earned Ratio

A financial ratio that measures a company's ability to meet its debt obligations based on its current earnings before interest and taxes.

Bond-Rating Agencies

Organizations that assess the creditworthiness of both corporate and governmental issuers of debt securities, providing investors with an indication of the risk level of bonds.

Quick Ratio

An indicator of a firm's capacity to cover its short-term liabilities using its most readily available assets.

  • Comprehend the concept of bond ratings and their importance in investment decisions.
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MG
maria garciaDec 12, 2024
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