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Financial Forensics · Quiz 2 · 3 Dec 2023 · September 2023 term

Question 2: PQR financials is a loan provider for businesses, and it …

Question 2

+1 markOne correct option

PQR financials is a loan provider for businesses, and it is evaluating the following companies for providing a loan.
a) Company A: Debt Equity Ratio: 0.8, Times Interest Earned: 8
b) Company B: Debt Equity Ratio: 0.2, Times Interest Earned: 8
c) Company C: Debt Equity Ratio: 0.8, Times Interest Earned: 2
d) Company D: Debt Equity Ratio: 0.2, Times Interest Earned: 2
As a financial analyst of PQR, you have to review the above information and provide a recommendation to the CEO of the company. What would be your recommendation to the CEO, regarding the best company to give the loan to?

  1. A

    A

  2. B

    B

  3. C

    C

  4. D

    D

Show answer

Correct answer

  • B

    B

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Question 2 of 25 in the IIT Madras BS Financial Forensics (Financial Forensics) Quiz 2 paper sat on 3 Dec 2023, in the September 2023 term (IIT M DEGREE AN2 EXAM QDB2 03 Dec 2023). It carries 1 mark.

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