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Which of the following classifications of method behavior is accurate?
Times Interest Earned
A financial ratio that measures a company's ability to meet its interest payments based on its operating income.
Times Interest Earned
A financial ratio that compares a company's operating income before interest and taxes to its interest expenses, indicating how well it can cover interest payments with earnings.
Debt-To-Equity Ratio
A financial benchmark illustrating the relationship between the use of shareholder equity and debt in funding company assets.
Times Interest Earned
Times interest earned, also known as interest coverage ratio, measures a company's ability to make interest payments on its debt with its earnings before interest and taxes.
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