Homework Answers
a) amount of cash received = 10,000
b) debt payments = 2000
ratio = b/a = 2000/10000 = 0.2 or 20%
i am above 15% threshold but in my case this is not reasonable because the amount of debt payments and also the cash i receive is not a big amount but it could be reasonable for big amounts for we can say for firms, big enterprises it is very reasonable even a small change affects drastically
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