A Times Interest Earned Ratio of 11 Means That the Company's

question 53

Multiple Choice

A times interest earned ratio of 11 means that the company's:

• A)net income is large enough to pay interest and taxes 11 times.
• B)net cash flow from operations before taxes and interest is large enough to pay interest and taxes 11 times.
• C)net cash flow from operations is large enough to pay interest and taxes 11 times.
• D)income before taxes and interest is large enough to pay interest 11 times.

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Definitions:

Exchange Rates

The price at which one currency can be exchanged for another currency in the forex market.

Creditworthiness

An assessment of a borrower's ability to repay debt as agreed, based on factors like credit history, income level, and current debt levels.

Canadian Dollar Appreciates

An increase in the value of the Canadian dollar relative to another currency.

Foreign Currency

Currency used in a country other than one's own, involved in international trade and investment.