Fixed Income Q140
- A
Its ability is very limited because companies in industries with those characteristics generally cannot support high debt loads.
- B
Its ability is strong because companies in industries with those characteristics generally have high margins and cash flows that can support significant debt.
- C
The information is insufficient to comment on the company’s debt-taking ability.
- Option : A
- Explanation : Companies in industries with those characteristics typically have low margins and limited cash flow and thus cannot support high debt levels.
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