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Financial Forensics · End Term · 21 Dec 2025 · September 2025 term

Question 36: XYZ bank is interested in lending loans to companies and…

Question 36

+1 markOne correct option

XYZ bank is interested in lending loans to companies and earn interest income from it. But at the same time they also want to ensure that their loan is repaid on a timely basis. What of the following number is most relevant for the bank to look at before approving the loan?

  1. A

    Quick ratio

  2. B

    Dividend Yield

  3. C

    Share Price of the company

  4. D

    Cash flow to debt ratio

Show answer

Correct answer

  • D

    Cash flow to debt ratio

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Question 36 of 40 in the IIT Madras BS Financial Forensics (Financial Forensics) End Term paper sat on 21 Dec 2025, in the September 2025 term (Financial Forensics 18 Dec 25). It carries 1 mark.

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