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    Question

    In the financial appraisal of a term loan, which of the

    following ratios is most relevant to assess the firm's ability to service debt?
    A Debt service coverage ratio (DSCR) Correct Answer Incorrect Answer
    B Inventory turnover ratio Correct Answer Incorrect Answer
    C Return on equity (ROE) Correct Answer Incorrect Answer
    D Price-to-earnings (P/E) ratio Correct Answer Incorrect Answer

    Solution

    The correct answer is A

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