Halverson's Times Interest Earned Ratio Was 2

question 13

Multiple Choice

Halverson's times interest earned ratio was 2.98 in 2010,2.79 in 2009,and 2.31 in 2008.Which of the following statements about their ratio is possibly correct?

• A)Their increasing ratio indicates decreasing levels of debt on which interest is incurred.
• B)Their increasing ratio indicates their strategy of pursuing growth by investment in other companies which has increased debt but their profits have not yet increased from those investments.
• C)The increasing ratio implies increased long-term debt financing.
• D)Their increasing ratio would be considered by creditors to be an indicator of higher risk.

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Definitions:

Positive Psychology

A branch of psychology focused on the study and cultivation of positive human functioning and flourishing on multiple levels.

Assessing Human Strengths

The process of identifying and evaluating an individual's positive traits and abilities.

Psychological Disorders

Patterns of behavioral or psychological symptoms that impact multiple areas of life and/or cause distress for the person experiencing them.

DSM-IV-TR

The fourth edition, text revision of the Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals as a guide to diagnosing mental disorders.