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Exam CVA topic 1 question 56 discussion

Actual exam question from NACVA's CVA
Question #: 56
Topic #: 1
[All CVA Questions]

____________________ are defined as the sum of the market value of total liabilities divide by the aggregate liquidation value of the preferred stock.

  • A. Liquidation Coverage ratio
  • B. Pretax return on total capital
  • C. Capitalization ratio
  • D. Fixed charge coverage
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Suggested Answer: A 🗳️

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