Halverson's Times Interest Earned Ratio Was 2

question 115

Multiple Choice

Halverson's times interest earned ratio was 2.98 in 2016, 2.79 in 2015, and 2.31 in 2014. Which of the following statements about the ratio is possibly correct?

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

Analyze the implications of marginal utility and pricing in consumer choice.

Apply the concept of the marginal utility-to-price ratio in maximizing utility.

Understand how budget constraints affect consumer choices.

Identify the conditions under which a consumer is in equilibrium.

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Definitions:

Positive Role Model

An individual whose behavior, example, or success can be emulated by others, especially by younger people or those in junior positions.

Enlightened Self-interest

A philosophy where individuals or groups pursue their own interests by considering the well-being of others, leading to mutual benefits.

Reaction Strategy

A plan of action designed to respond to changes or challenges in the business environment after they occur.

Deny Responsibility

The act of refusing to accept blame or accountability for one's actions or decisions.