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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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