If a Bank Loan Officer Were Considering a Company's Request

question 69

Multiple Choice

If a bank loan officer were considering a company's request for a loan, which of the following statements would you consider to be CORRECT?

• A) The lower the company's EBITDA coverage ratio, other things held constant, the lower the interest rate the bank would charge the firm.
• B) Other things held constant, the higher the debt ratio, the lower the interest rate the bank would charge the firm.
• C) Other things held constant, the lower the debt ratio, the lower the interest rate the bank would charge the firm.
• D) The lower the company's TIE ratio, other things held constant, the lower the interest rate the bank would charge the firm.
• E) Other things held constant, the lower the current ratio, the lower the interest rate the bank would charge the firm.

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Definitions:

Conflict Management Styles

The varied approaches and techniques used to address and resolve disagreements or disputes, ranging from avoidance to collaboration.

Prosocials

denotes individuals who have a tendency to behave in ways that benefit others, showing concern for the welfare and rights of others.

Interdependent

Being mutually dependent, where the actions of one party significantly affect the other.

Self-Monitoring

The awareness and regulation of one's behavior in accordance with the social situations and norms.