Assume that you are considering purchasing some of a company's long-term bonds as an investment. Which of the company's financial statement ratios would you probably be most interested in?
A)Debt to assets ratio
B)Debt to equity
C)Plant assets to long-term liabilities
D)All of the other answers are correct.

Question

Quizplus · Accepted Answer

Investors interested in investing in long-term bonds would be interested in the company's long-term ability to pay its debt. Solvency ratios are used to analyze a company's long-term debt-paying ability and its financing structure. Solvency ratios include: debt to assets, debt to equity, number of times interest earned and plant assets to long-term liabilities.

Assume That You Are Considering Purchasing Some of a Company's