Low coverage ratios suggest that a firm has capacity to assume more debt. （ ）
举一反三
- () is the ratios that measure a firm's ability to meet short-term obligations. A: liquidity ratios B: leverage ratios C: coverage ratios D: profitability ratios
- 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.
- ()<br/>is the ratio that measure a firm’s ability to meet short-term<br/>obligations. A: liquidity<br/>ratios B: leverage<br/>ratios C: coverage<br/>ratios D: activity<br/>ratios
- The ________ of a firm's debt can be used as the firm's current cost of debt. A: current yield B: coupon rate C: yield to maturity D: discount yield
- If a firm has a debt to owners' equity ratio of .75 (or 75%) we can conclude that A: it has relied more on debt than equity to finance its operations. B: the firm is likely to have trouble paying its short-term debts when they come due. C: its total liabilities are less than its owners' equity. D: the firm has expenses that are exactly 75% of its gross profit.