Which of the Following Is Correct

question 2

Multiple Choice

Which of the following is correct?

• A)The times interest earned ratio is considered a better test of the ability to cover interest charges than the cash coverage ratio.
• B)The debt-to-equity ratio shows the relative proportion of total assets financed by debt.
• C)The higher the debt-to-equity ratio, the higher the potential return to the stockholders if return on assets (ROA) exceeds the after tax cost of interest.
• D)The cash coverage ratio compares the cash generated by a company to its cash obligations for the prior perioD.A high debt-to-equity ratio means that there is a lot of debt financing relative to equity financing.If the ROA exceeds the after-tax cost of financing, the excess represents a return to stockholders, which increases the return on their investment.

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Definitions:

Spatial Position

The specific physical location or coordinates of an object or individual in a given space.

Cultural Differences

Variations in the practices, norms, and values among groups of people from different backgrounds.

Dani People

An indigenous group of people living in the highlands of West Papua, Indonesia.

Guugu Yimithrr

Is an Australian Aboriginal language spoken in the region of Hope Vale, North Queensland.