The Debt to Equity Ratio and Interest Coverage Ratio for Lopez

question 26

Multiple Choice

The debt to equity ratio and interest coverage ratio for Lopez Corporation for the last two years are as follows: Which of the following conclusions could be made about Lopez Corporation?

• A) The company is less able to pay its interest costs in 2017.
• B) The company is better able to pay its interest costs in 2017.
• C) The company has more debt outstanding in 2017.
• D) The company is less risky in 2017.