If You Are a Lender Evaluating a Loan Application and You

question 16

True/False

If you are a lender evaluating a loan application and you calculate the following ratio: (EBIT + Lease Payments)/[Interest + Lease Payments + (Sinking Fund/(1 − T))],then you are calculating a debt service ratio and it should be less than one in order to approve the loan.

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Definitions:

Southern States

The states located in the southeastern and south-central United States, historically known for their distinctive historical, cultural, and economic characteristics, especially in the context of the Civil War and agricultural economy.

Local Affairs

Matters or issues that pertain to the governance, policies, and interests of a local community or region.

Civil Rights Bill

Legislation aimed at protecting the civil rights of individuals, often focusing on preventing discrimination based on race, religion, sex, or national origin.

1866

A year notable for events such as the end of the American Civil War and the beginning of the Reconstruction era in the United States.