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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