CFA Practice Question

There are 89 practice questions for this study session.

CFA Practice Question

Which ratio is the most important factor to indicate that a company has plenty of financial capacity to add more debt if there is an investment reason?

A. A big profit margin.
B. A big cash flow interest coverage ratio.
C. A big operating cash flow to net income ratio.
Correct Answer: B

The ratio shows financial strength of a company.

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