The interest rate a company pays on 1-year, 5-year, and 10-year loans is a partly determined by 1.whether its cash flow from operations as a percentage of global revenues for the past two years is above 15%. 2.the length of the term over which repayment is scheduled to occur--the interest rate is lowest for 1-year loans and highest for 10-year loans. 3.its current ratio and prior-year cash flow from operations as a percentage of prior-year global revenues. 4.its current ratio, its its debt-equity ratio, and whether its cash flow from operations as a percentage of global revenues for the past two years is above 10%. 5.its prior-year market share of global footwear sales and whether the company has been profitable for three consecutive years.

The interest rate a company pays on 1-year, 5-year, and 10-year loans is a partly determined by 1.whether its cash flow from operations as a percentage of global revenues for the past two years is above 15%. 2.the length of the term over which repayment is scheduled to occur--the interest rate is lowest for 1-year loans and highest for 10-year loans. 3.its current ratio and prior-year cash flow from operations as a percentage of prior-year global revenues. 4.its current ratio, its its debt-equity ratio, and whether its cash flow from operations as a percentage of global revenues for the past two years is above 10%. 5.its prior-year market share of global footwear sales and whether the company has been profitable for three consecutive years.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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