If Your Life Follows the Pattern of College-Marriage-Kids-Retirement, Your Need

question 142

Multiple Choice

If your life follows the pattern of college-marriage-kids-retirement, your need for life insurance will

• A)steadily increase.
• B)steadily decrease.
• C)stay the same.
• D)rise, peak and then decline.

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Definitions:

Times Interest Earned

Times interest earned, also known as interest coverage ratio, measures a company's ability to make interest payments on its debt with its earnings before interest and taxes.

Debt-To-Equity Ratio

A metric outlining the balance of shareholder equity and debt in the financial composition for supporting a company's assets.

Equity Multiplier

A financial leverage ratio that indicates the portion of a company's assets that are financed by shareholders' equity.

Net Profit Margin

A financial metric that shows the percentage of revenue remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from total revenue.