If the Times Interest Earned Ratio

question 130

Multiple Choice

If the times interest earned ratio:

• A) Is greater than 1.5, the company is in default.
• B) Increases, then risk decreases.
• C) Is greater than 3.0, the company is likely carrying too much debt.
• D) Increases, then risk increases.
• E) Is less than 1.5, the company is carrying too little debt.

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Definitions:

Vernon's Hierarchical

A model of intelligence proposing a hierarchical structure of cognitive abilities, with general intelligence at the top, followed by major group factors and then specific abilities.

Independent Factors

Variables in an experiment that are manipulated or changed to determine their effects on the dependent variables.

Verbal Abilities

Skills related to understanding, using, and processing words and language.

Stanford-Binet

An intelligence test designed to measure human intelligence and cognitive abilities, developed as a revision of the Binet-Simon scale.