Funds from operations (FFo) of Pay Handle ltd increased in 2011. in 2011 the total debt of the company remained unchanged, while additional common shares were issued.Pay Handle ltd's ability to service its debt in 2011, as compared to 2010, most likely:
A) improved.
B) worsened.
C) remained the same.

Question

Quizplus · Accepted Answer

Since the funds from operations (FFO) increased in 2011 and the total debt remained unchanged, it means that the company has more financial resources to service its debt. Additionally, the issuance of additional common shares might have also contributed to an increase in equity, which could improve the company's ability to service its debt. Therefore, Pay Handle ltd's ability to service its debt in 2011 likely improved.

Funds from Operations (FFo) of Pay Handle Ltd Increased in 2011