Which one of the following statements is correct If the total debt ratio is greater than 50, then the debt equity ratio must be greater than 1 0 Long term creditors would prefer the times interest earned ratio be 1 4 rather than 1 5 All else equal, an increase in the inventory will lead to an increase in the cash ratio The debt equity ratio can be computed as 1 plus the equity multiplier An equity multiplier of 1 2 means a firm has $1 20 in sales for every $1 in equity Which one of the following statements is correct If the total debt ratio is greater than 50, then the debt equity ratio must be greater than 1 0 Long term creditors would prefer the times interest earned ratio be 1 4 rather than 1 5 All else equal, an increase in the inventory will lead to an increase in the cash ratio The debt equity ratio can be computed as 1 plus the equity multiplier An equity multiplier of 1 2 means a firm has $1 20 in sales for every $1 in equity O

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Posted on Oct 02, 2024

Which one of the following statements is correct? If the total debt ratio is greater than .50, then the debt-equity ratio must be greater than

Which one of the following statements is correct?

		If the total debt ratio is greater than .50, then the debt-equity ratio must be greater than 1.0.
		Long-term creditors would prefer the times interest earned ratio be 1.4 rather than 1.5.
		All else equal, an increase in the inventory will lead to an increase in the cash ratio
		The debt-equity ratio can be computed as 1 plus the equity multiplier.
		An equity multiplier of 1.2 means a firm has $1.20 in sales for every $1 in equity.

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Which one of the following statements is correct? If the total debt ratio is greater than 50, then the debt-equity ratio must be greater than 1.0. Long-term creditors would prefer the times interest earned ratio be 1.4 rather than 1.5. All else equal, an increase in the inventory will lead to an increase in the cash ratio The debt-equity ratio can be computed as 1 plus the equity multiplier. An equity multiplier of 1.2 means a firm has $1.20 in sales for every $1 in equity. O