If the Times Interest Earned Ratio

question 130

Multiple Choice

If the times interest earned ratio:

• A) Is greater than 1.5, the company is in default.
• B) Increases, then risk decreases.
• C) Is greater than 3.0, the company is likely carrying too much debt.
• D) Increases, then risk increases.
• E) Is less than 1.5, the company is carrying too little debt.

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Definitions:

Market Development

A growth strategy in which a company aims to increase market share by promoting existing products, or introducing new products, into new markets or segments.

Professional Entry

The process or requirements for becoming recognized as a qualified practitioner in a professional field.

Market Penetration

A business growth strategy involving efforts to increase market share within an existing customer base or market segment, often by competitive pricing, advertising, or product improvements.

Abercrombie & Fitch

An American lifestyle retailer that focuses on casual wear for young consumers, known for its distinctive brand image and marketing strategies.