A High Growth Rate Company May Have a Low Times

question 148

True/False

A high growth rate company may have a low times interest earned ratio because it has used debt to finance property, plant and equipment assets that are not yet generating a level of profits expected to materialize in the future.

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Definitions:

Glycemic Index

A measure that ranks foods according to their impact on blood glucose levels.

Diabetes Type 2

A chronic condition where the body either resists the effects of insulin or doesn't produce enough insulin to maintain normal glucose levels.

Caloric Intake

The total number of calories consumed through food and beverages within a given period.

Soluble Fibre

Fibre that, as it passes through the digestive tract, breaks down and forms a gel that is thought to reduce the amount of cholesterol that is absorbed; sources include oats, legumes, some seeds, brown rice, barley, oats, fruits, some green vegetables, and potatoes.