If the Times Interest Earned Ratio

question 52

Multiple Choice

If the times interest earned ratio:

• A)Increases,then risk increases.
• B)Increases,then risk decreases.
• C)Is greater than 1.5,the company is in default.
• D)Is less than 1.5,the company is carrying too little debt.
• E)Is greater than 3.0,the company is likely carrying too much debt.

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Definitions:

Belief Systems

Frameworks of principles and values through which individuals perceive and interact with the world.

Past Experiences

Refers to events or activities that an individual has gone through in their life, shaping perceptions and behavior.

Feedback

Information given to a person or group about their performance or behavior with the intent to guide future improvements.

Group's Environment

The physical and social setting in which a group operates, including all external factors that influence the group's dynamics.