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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.


Definitions:

Shares of the Business

Equity units of a corporation that represent ownership interest held by shareholders, giving them a claim on the company's profits in the form of dividends.

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