A Reduction in Interest Expense, All Else Constant, Will Cause

question 354

Multiple Choice

A reduction in interest expense, all else constant, will cause a(n) :

• A) Decrease in the times interest earned ratio.
• B) Increase in the cash coverage ratio.
• C) Decrease in the long-term debt ratio.
• D) Decrease in the return on equity.
• E) Increase in the price earnings ratio.

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