Which of the following trends can be unfavorable from the viewpoint of a bondholder? a. The issuing company’s debt ratio is steadily declining. b. The issuing company’s interest coverage ratio is steadily rising. c. Market interest rates are steadily rising. d. The issuing company’s net cash flow from operating activities is steadily increasing.

Which of the following trends can be unfavorable from the viewpoint of a bondholder? a. The issuing company’s debt ratio is steadily declining. b. The issuing company’s interest coverage ratio is steadily rising. c. Market interest rates are steadily rising. d. The issuing company’s net cash flow from operating activities is steadily increasing.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter5: Risk Analysis

Section: Chapter Questions

Problem 2QE

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