Which of the following statements about the times-interest-earned ratio is true? A. The times-interest-earned ratio is calculated
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Question:
Which of the following statements about the times-interest-earned ratio is true?
A. The times-interest-earned ratio is calculated by dividing gross income by interest expense.
B.A lower ratio indicates a higher debt paying ability.
C. Debt reduction leads to an increase in interest expense.
D. The times-interest-earned ratio is also called the? interest-coverage ratio.
Related Book For
Equity Asset Valuation
ISBN: 978-0470571439
2nd Edition
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
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