CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

In the evaluation of credit ratings, a company will most likely be assigned a higher credit rating if it has a ______.
A. lower EBITDA/Interest ratio
B. lower dividends-to-total-debt ratio
C. higher five-year average of its coefficient of variation of its operating margin
Explanation: A lower dividend means more retention and increased equity; higher retained cash flow will result in a higher credit rating.

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