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Ford has a times-interest-earned ratio of 4.8 times, and Toyota has a times-interest-earned ratio of 5.3 times. What conclusions would Ford's chief financial officer
Ford has a times-interest-earned ratio of 4.8 times, and Toyota has a times-interest-earned ratio of 5.3 times. What conclusions would Ford's chief financial officer arrive at looking at these numbers and Toyota's ratio? O The times-interest-earned ratio is of no interest to lenders because the ratios are so close together. O Ford is in a better position to pay interest than Toyota. None of these. O A times-interest-earned ratio of 4.8 times is better than a times-interest-earned ratio of 5.3 times. O Toyota is in a better position to cover its interest costs than Ford. D Question 14 3 pts Which of the following is a debt-coverage ratio? O earnings per share O inventory turnover return on equity none of these O times-interest-earned
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1 The correct option would be e ie Toyota is in a better position to cover its Interest cost than Fo...Get Instant Access to Expert-Tailored Solutions
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