An analyst makes the appropriate adjustments to the financial statements of retail companies that are lessees using a substantial number of operating leases. Compared to ratios computed from the unadjusted statements, the ratios computed from the adjusted statements would most likely be higher for:（）
A: the debt-equity ratio but not the interest coverage ratio.
B: the interest coverage ratio but not the debt-equity ratio.
C: both the debt-equity ratio and the interest coverage ratio.
A: the debt-equity ratio but not the interest coverage ratio.
B: the interest coverage ratio but not the debt-equity ratio.
C: both the debt-equity ratio and the interest coverage ratio.
举一反三
- Which one of the following statements is correct? ( ) A: An increase in the depreciation expense will not affect the cash coverage ratio. B: The debt-equity ratio can be computed as 1 plus the equity multiplier. C: Long-term creditors would prefer the times interest earned ratio be 1.4 rather than 1.5. D: If the total debt ratio is greater than .50, then the debt-equity ratio must be less than 1.0.
- Which of the following statements best compares long-term borrowing capacity ratios? A: The debt/equity ratio is more conservative than the debt ratio. B: The debt ratio is more conservative than the debt/equity ratio. C: The debt/equity ratio is more conservative than the debt to tangible net worth ratio. D: The debt to tangible net worth ratio is more conservative than the debt/equity ratio.
- From a cash flow position, which one of the following ratios best measures a firm's ability to pay the interest on its debts? A: times interest earned ratio B: cash coverage ratio C: cash ratio D: quick ratio E: Interval measure
- A low debt ratio is safer than a high debt ratio.
- Corner Books has a debt-equity ratio of .57. What is the total debt ratio? A: 2.75 B: 0.3 C: 2.27 D: 0.44 E: 0.36