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Which of the following statements is least likely correct? The company’s:

A. Debt/Total capital ratio will improve. B. interest coverage ratio will deteriorate. C. preferred shareholders will rank below debt holders sahould the company file for bankruptcy . A company has just issued $5 million of mandatory redeemable preferred shares with a par value of $100 per share and a7 percent dividend. The issue matures in5 years.

Business Development
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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2014/10/23
Upvote (0) Views (4) Followers (3) Answers (3) Report Question
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P A Cariappa Appaiah
by P A Cariappa Appaiah , back office executive , Inspire Hond

I go for " A", it is the right answer.

Ibrahim Hussein Mayaleh
by Ibrahim Hussein Mayaleh , Sales & Business Consultant and Trainer , Self-employed

I go for A

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

The Least likely is:   A. Debt/Total capital ratio will improve.

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