When Assessing the Fixed-Payment Coverage Ratio,________

question 87

Multiple Choice

When assessing the fixed-payment coverage ratio,________.

• A)the lower its value the more risky is the firm
• B)the lower its value,the higher is the firm's financial leverage
• C)preferred stock dividend payments can be disregarded
• D)the higher its value,the more difficult it is for a firm to pay its debts

---

Definitions:

Operant Conditioning

Operant conditioning is a learning process through which the strength of a behavior is modified by reinforcement or punishment.

Classical Conditioning

Pavlovian Conditioning, an associative learning process through which an animal or human learns to link two stimuli, with one stimulus coming to evoke a response originally evoked by the other.

Animal's Behavior

The actions or reactions of animals in response to external or internal stimuli, often studied to understand instinctual and learned behaviors.

Reinforcer

Any stimulus that strengthens or increases the probability of a specific response or behavior.