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xParticipantsGuide x , M quiz answer. answer hgi X ax//simQuiz Simulation Quiz 1

ID: 1138257 • Letter: X

Question

xParticipantsGuide x , M quiz answer. answer hgi X ax//simQuiz Simulation Quiz 1 Que Next u Previous Question 5 Which of the following are the three factors used to determine a company's credit rating? o The size of the company's year end cash balance, the average of its ROE for the past three & Quess Question E Question aeas years, and how many times the company has been put on crodit watch in the past 5 years Whether the company has sufficient cash on hand at the beginning of each year to cover the upcoming years interest paymonts, the number of times the company's credit rating as been roduced in the past three yoars, and the company's current ratio C Question z o Its debt-to assets ratio, its interest coverago ratio, and its current assets rat e Its current ratio, its interest coverage ratio, and its debt to-equity ratic O The average if its free cashflow over the past two yoars, the average of its R DE for the per aesion aest n three years, and ts not profit margn Copying, reaut

Explanation / Answer

1. Its debt asset ratio, default risk ratio and interest coverage ratio are the three factors used to determine a company’s credit rating. So the correct option is C.

2. Earning on shareholder equity is not among the five measures on which a company’s performance is judged/scored. So the correct option is D.

3. Retailers in any geographic region can order action cameras one business day and receive them five business days later is not accurate as concerns the retailers and buyers of action-capture cameras. So the correct option is A.