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Basic Question 7 of 7
What is the primary reason why lenders are interested in operating cash flows as well as earnings?
B. They want to assess a company's future equity value and underwrite an issuance of securities for a company that has high expected operating cash flows.
C. They want to assess whether or not a company is a good credit risk.
A. They want to know if the company can meet or exceed its past quarterly dividend payments.
B. They want to assess a company's future equity value and underwrite an issuance of securities for a company that has high expected operating cash flows.
C. They want to assess whether or not a company is a good credit risk.
User Contributed Comments 3
| User | Comment |
|---|---|
| danlan | Lenders are not interested in dividend payments(A) or equity value(B), they are for shareholders. |
| ColonelCFA | touche |
| johntan1979 | Interest coverage |
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Andrea Schildbach
Learning Outcome Statements
analyze and interpret both reported and common-size cash flow statements
CFA® 2025 Level I Curriculum, Volume 2, Module 5.