CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Other measures being equal, which DSC ratio would be considered the best from a creditor's perspective?

A. A DSC ratio of 0.1
B. A DSC ratio of 1
C. A DSC ratio of 5
Correct Answer: C

The higher the ratio, the more likely the borrower can use the property's cash flow to service the debt.

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