Question: If the times interest earned ratio: Multiple Choice Increases, then risk increases. Increases, then risk decreases. Is greater than 1.5, the company is in default.
If the times interest earned ratio: Multiple Choice Increases, then risk increases. Increases, then risk decreases. Is greater than 1.5, the company is in default. Is less than 1.5, the company is carrying too little debt
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
