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Which of the following statements is correct about the interpretation of the Times Interest Earned ratio? a. It measures the percentage of total assets financed

Which of the following statements is correct about the interpretation of the Times Interest Earned ratio?

a. It measures the percentage of total assets financed with debt.

b. Lower ratio means less risk for the company in term of solvency.

c. Higher ratio means less risk for the company in term of solvency.

d. It measures the percentage of total assets financed with equity.

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