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.
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.
举一反三
- 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.
- 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 low debt ratio is safer than a high debt ratio.
- 中国大学MOOC: A firm has a long-term debt ratio of 50%. This means that the book value of equity:
- Typically, which of the following would be considered to be the most indicative of a firm's long-term debt paying ability? A: working capital B: Debt ratio C: acid test D: cash ratio