Business, 10.02.2020 20:45 jasminesilva07oql1a9
Which one of the following statements is correct? Select one: a. If the total debt ratio is greater than .50, then the debt-equity ratio must be less than 1.0. b. Long-term creditors would prefer the times interest earned ratio be 1.4 rather than 1.5. c. The debt-equity ratio can be computed as 1 plus the equity multiplier. d. An equity multiplier of 1.2 means a firm has $1.20 in sales for every $1 in equity. e. An increase in the depreciation expense will not affect the cash coverage ratio.
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Which one of the following statements is correct? Select one: a. If the total debt ratio is greater...
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