Pick the correct statement from below.

Multiple Choice

If the total debt rati$\text{'}$s greater than $50,$ then the debt equity ratio must be less than $10.$

Long$-$term creditors would prefer the times interest earned ratio be $1\mathrm{.}4$ rather than $1\mathrm{.}5.$

The debt$-$equity ratio can be computed as $1$ plus the equity multiplier.

An equity multiplier of $12$ means a firm has $$120$ in sales for every $$1$ in equily.

An increase in the depreciation expense will not affect the cash coverage ratio.