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Which of the following solvency ratios is the best measure of a company's ability to pay interest and maturing principal amounts on its long-term debt?

Which of the following solvency ratios is the best measure of a company's ability to pay interest and maturing principal amounts on its long-term debt?

a.Times interest earned ratio.

b.Debt-to-equity ratio.

c.Earnings per share.

d.Debt service coverage ratio.

Which of the following profitability ratios is most useful in indicating the "quality" of a company's earnings?

a.Dividend yield ratio.

b.Gross profit ratio.

c.Price/earnings ratio.

d.Dividend payout ratio.

Which profitability ratio requires the use of earnings per share in its calculation?

a.Profit margin.

b.Dividend yield ratio.

c.Price/earnings ratio.

d.Return on common stockholders' equity.

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