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Question
The extent to which the operating income can decline before a firm is unable to meet its annual interest costs can be found in:
a. the price-earnings ratio.
b. the debt ratio.
c. the times interest earned ratio.
d. the return on equity.
e. the profit margin.
Answer
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Related questions
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Which of the following is true about financial institutions in the United States compared to those in other countries?
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Q:
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Q:
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a. True
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Q:
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Q:
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Q:
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b. False
Q:
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Q:
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d. Firms with relatively high debt ratios have higher expected returns when business is good.
e. Firms with relatively low debt ratios have higher expected returns when business is poor.