The Interest Rate A Company Pays On Loans Outstanding Depends On

(Correct Answer Below)

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The Interest Rate A Company Pays On Loans Outstanding Depends On

a. its free cash flow in the prior year and whether its prior-year net profit margin exceeded 10%. b. its credit rating. c. Its accounts payable ratio, its debt-assets ratio, and its loan default percentage over the past three years. d. its current ratio, debt-equity ratio, and default risk ratio. e. its current ratio, the amount of cash on hand to make interest payments, and the average annual amount of free cash flow.
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b. its credit rating.

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