Which of the Following Statements Is Correct with Respect to the Times

question 30

Multiple Choice

Which of the following statements is correct with respect to the times interest earned ratio?

I. It is independent of operating income.
II. It is independent of the interest rate paid on debt.
III. It is independent of the tax rate.
IV. It is independent of the amount of dividends paid.

• A)I, II, and III
• B)I and III
• C)I and IV
• D)III and IV

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Definitions:

Methyl Pentanoate

An ester formed from methanol and pentanoic acid, used in flavorings and fragrances.

β-Ketoester

An ester compound containing a ketone group (C=O) at the beta-position relative to the ester group.

Claisen Condensation

A chemical reaction where two esters or an ester and a carbonyl compound react in the presence of a base to form a β-keto ester or a β-diketone.

Ester Enolate

A reactive intermediate formed from the deprotonation of an ester, used in various organic synthesis reactions.