The Times-Interest-Earned Ratio Expresses the Relationship Between the Capital Contributions

question 104

True/False

The times-interest-earned ratio expresses the relationship between the capital contributions of creditors and those of the owners.

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Definitions:

Earnings Per Share

A financial metric that calculates the portion of a company’s profit allocated to each outstanding share of common stock, indicating a company's profitability.

Common Stock

Equity ownership in a corporation, providing voting rights and potential dividends to shareholders.

Dividends

Disbursements issued by a company to its shareholders, often as an allocation of earnings.

Dividend Yield Ratio

A financial metric indicating the annual dividends a company distributes in comparison to its stock price.