The Difference Between a Venture's Ability to Generate Cash to Pay

question 73

Multiple Choice

The difference between a venture's ability to generate cash to pay interest and the amount of interest it has to pay is determined by which of the following ratios?

• A)fixed-charges coverage
• B)debt-to-equity ratio
• C)equity multiplier
• D)interest coverage

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Definitions:

Exhausts

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The cost of forgoing the next best alternative when choosing between two options.

Production Possibilities Schedule

A table that shows the different combinations of various goods that a country can produce with given resources and technology.