All of the Following Are Financial Leverage Ratios Except the

question 23

Multiple Choice

All of the following are financial leverage ratios except the

• A)current ratio.
• B)cash coverage ratio.
• C)total debt ratio.
• D)times interest earned ratio.
• E)equity multiplier.

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Definitions:

Marginal Tax Rate

The marginal tax rate is the rate at which your last dollar of income is taxed, essentially the rate applied to your next dollar of taxable income.

Corporate Bond

A debt security issued by corporations to raise capital, promising to pay back the face value in addition to interest.

Municipal Bond

A debt security issued by a city, municipality, or county to finance its capital expenditures, often offering tax-free interest payments to investors.

Municipal Bond

A debt security issued by a state, municipality, or county to finance its capital expenditures, often tax-exempt for investors.