Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. which one of the following statements is correct?

Which one of the following statements is correct? If the total debt ratio is greater...

70.2K

Verified Solution

Question

Finance

image

Which one of the following statements is correct? If the total debt ratio is greater than .50, then the debt-equity ratio must be less than 1.0. Long-term creditors would prefer the times interest earned ratio be 1.4 rather than 1.5. The debt-equity ratio cannot be expressed as the equity multiplier minus 1. Equity multiplier should be greater or equal to 1. An increase in the depreciation expense will affect the cash coverage ratio

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students