Which of the following statements is correct? Multiple Choice An increase in the depreciation expense will affect the cash coverage ratio. An equity multiplier of 1.2 means a firm has $1.20 in sales for every $1 in equity. Long-term creditors would prefer the times interest earned ratio be 8 rather than 3. O The debt-equity ratio can be computed as 1 plus the equity multiplier. If the total debt ratio is greater than .50, then the debt-equity ratio must be less than 1.0