All of the Following Ratios Reflect Leverage Ratios EXCEPT

question 12

Multiple Choice

All of the following ratios reflect leverage ratios EXCEPT

• A) debt to asset ratio.
• B) times interest earned.
• C) coverage of fixed charges.
• D) price/earnings ratio.
• E) debt to equity ratio.

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Definitions:

Discount

A reduction in the price of goods, services, or financial instruments, often used as a marketing strategy or to encourage early payment.

International Fisher Effect

A theory stating that differences in nominal interest rates between two countries are directly proportional to changes in the exchange rate over the same period.

Nominal Rates

Interest rates or rates of return that have not been adjusted for inflation.

Note Issuance Facility

A financial arrangement that allows a borrower to issue short-term debt securities as needed, up to a predetermined limit.