Analysts use measures of long-term _____ to evaluate a firm's ability to meet interest and principal payments on long-term debt and similar obligations as they come due.If a firm cannot make the payments on time, it becomes insolvent and may have to reorganize or liquidate.
A) insolvency factors
B) reorganization factors
C) liquidity risk
D) insolvency risk
E) cash flow risk
Correct Answer:
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