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What are some factors to consider in evaluating a company's ability to make payments on outstanding...

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Finance

What are some factors to consider in evaluating a company'sability to make payments on outstanding debt? Please explain thefactors rather than just providing a list.

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The following are the factors that which needs to be considered for the purpose of evaluating firms ability in making debt payments 1 Liquidity The firms liquidity plays a vital role in estimating the paying ability of the firm This is because liquidity of the firm describes the smooth cash inflow    See Answer
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