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Stacey Has a Debt Service Coverage Ratio of 1

Question 32

Multiple Choice

Stacey has a debt service coverage ratio of 1.15.This tells us that


A) Stacey's debt service charges are 1.15% of her take-home pay.
B) Stacey has virtually no debt to service.
C) Stacey has poor debt-carrying capacity and much of her future income will be required to service past debt.
D) Stacey's debt reserves are only 1.15 times greater than her actual debts.

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