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Suppliers of long-term debt (lenders) are primarily concerned with the firm's:
Ashort-term liquidity only
Bemployee wage levels
Cday-to-day cash balance
Dlong-term solvency and ability to pay interest and repay principal
Answer & Solution
Correct answer: D. long-term solvency and ability to pay interest and repay principal
Long-term lenders focus on solvency — the firm's ability over time to pay interest and repay the principal.
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