Which of the following are steps taken in applying the opera

Which of the following are steps taken in applying the operating income approach in determining how much debt a firm can carry?

Question 9 options:

Assesses both current conditions and past history.

For a given debt level we estimate interest and principal payments due.

Set a limit on probability of being unable to meet debt commitments.

All of the above.

Solution

Assesses both current conditions and past history.

For a given debt level we estimate interest and principal payments due.

Set a limit on probability of being unable to meet debt commitments.

Thanks