Which of the following is correct? Multiple Choice The debt-to-equity ratio shows the relative proportion of total assets financed by debt. The higher the debt-to-equity ratio, the higher the potential return to the stockholders, but also the higher risk to stockholders. The cash coverage ratio compares the cash generated by a company to its cash obligations for the prior period. The times interest earned ratio is considered a better test of the ability to cover interest charges than the cash coverage ratio