Juanita has the following three ratios: 1. debt service coverage = 2.5
Juanita has the following three ratios: 1. debt service coverage = 2.5, 2. debt ratio = 0.5, and 3 . liquidity ratio = 0.8. We can say that Juanita has
A)
poor solvency and poor liquidity.
B)
strong solvency and strong liquidity.
C)
strong liquidity but poor solvency.
D)
strong solvency but poor liquidity.
ANSWER
D
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