Line of credit to fill temporary cash shortfalls

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Reference no: EM131020842

Which of the following financial ratios/percentages would be the most likely reason for a bank to NOT approve a company’s application for a line of credit to fill temporary cash shortfalls?

a. Return on Equity percentage growing less than 10% annually

b. Current ratio at 2.5:1

c. Number of times interest to Annual Operating Cash Flow = 6

d. Debt-to-asset ratio at 0.68

Reference no: EM131020842

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