What Best Explains Why a Firm's Ratio of (Long Term

question 15

Multiple Choice

What best explains why a firm's ratio of (long term debt/total capital is lower than the industry average,while the ratio of (income before interest and taxes/debt interest charges) is lower than the industry average.

• A) The firm pays lower interest on long-term debt than the average firm
• B) The firm has more short-term debt than average
• C) The firm has a high ratio of (current assets/current liabilities)
• D) The firm has a high ratio of (total cash flow/long term debt)
• E) none of these

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Definitions:

Array

A data structure that stores a collection of items at contiguous memory locations where each item can be accessed by an index.

Implicit Conversion

Automatic transformation of a value from one data type to another by the compiler.

Int Answer

A term "Int Answer" is not a standard key term, but it likely refers to the result of an operation or calculation that is an integer (int) type in programming.

Double Avg

Double Avg presumably refers to calculating the average of some numeric values where the result is expressed as a double data type, which is a floating-point type that has more precision than float.