Question
Company A has a times-interest-earned ratio of 5.9, and company B has a times-interest-earned ratio of 6.4. A is a competitor of B. What conclusions
Company A has a times-interest-earned ratio of 5.9, and company B has a times-interest-earned ratio of 6.4. A is a competitor of B. What conclusions would the Chief financial officer of A arrive at looking at these numbers and his competitors?
A)Company B is in a better position to pay interest than company A.
B)A times-interest-earned ratio of 5.9 is better than a times-interest-earned ratio of 6.4.
C)The times-interest-earned ratio is of no interest to lenders because the ratios are so close together.
D)Company A is in a better position to pay interest than it was last year.
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Foundations Of Shariah Governance Of Islamic Banks
Authors: Karim Ginena, Azhar Hamid
1st Edition
1118460774,1118460804
