Question
Which of the following statements is true about the relationship between the debt/assets ratio and the times-interest-earned ratio (TIE) of a firm? A) If the
Which of the following statements is true about the relationship between the debt/assets ratio and the times-interest-earned ratio (TIE) of a firm?
A) If the debt/assets ratio decreases, the TIE ratio will increase.
B) If the debt/assets ratio decreases, the TIE ratio will also decrease.
C) The debt/assets ratio and the TIE ratio are not related to each other.
D) The debt/assets ratio will always be equal to the TIE ratio.
E) If the debt/assets ratio increases, the TIE ratio will also increase.
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Financial Markets And Institutions
Authors: Jeff Madura
13th Edition
0357130790, 978-0357130797
