If a business has a fixed-charges coverage ratio of 5.0 times and the industry average is 4.0

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If a business has a fixed-charges coverage ratio of 5.0 times and the industry average is 4.0 times, how does the company compare to the industry average?

a) The company may be able to service all its fixed charges better than other companies in the industry.

b) The company is doing better than the industry average.

Related Book For answer-question

Foundations of Business

ISBN: 978-1337386920

6th edition

Authors: William M. Pride, Robert J. Hughes, Jack R. Kapoor

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Posted Date: Feb 21, 2020 10:47 PM

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If a business has a fixed-charges coverage ratio of 5.0 times and the industry average is 4.0

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Expert Answer:

b The company is doing better than the industry average is correct E... View the full answer

Foundations of Business

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