Which of the Following Is Correct

question 70

Multiple Choice

Which of the following is correct?

• A)The times interest earned ratio is considered a better test of the ability to cover interest charges than the cash coverage ratio.
• B)The debt to equity ratio shows the relative proportion of total assets financed by debt.
• C)The higher the debt-to-equity ratio, the higher the potential return to the stockholders if return on assets (ROA) exceeds the after tax cost of interest.
• D)The cash coverage ratio compares the cash generated by a company to its cash obligations for the prior period.

---

Definitions:

Vertebrate Eye

A complex organ in vertebrates that allows for vision by detecting light and converting it into neural signals.

Genetic Engineering

The deliberate modification of the characteristics of an organism by manipulating its genetic material.

Darwin's Finches

A group of Galápagos Islands' finches that played a critical role in Charles Darwin's study of natural selection.

Galápagos Islands

An archipelago of volcanic islands in the Pacific Ocean, known for their unique endemic species and significant contribution to the development of Charles Darwin's theory of evolution by natural selection.