Which of the following ratios provides a solvency measure that shows the margin of safety...
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Accounting
Which of the following ratios provides a solvency measure that shows the margin of safety of noteholders or
bondholders and also gives an indication of the potential ability of the business to borrow additional funds on
a long-term basis?
a. ratio of fixed assets to long-term liabilities
b. ratio of net sales to assets
c. number of days' sales in receivables
d. rate earned on stockholders' equity
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