Multiple Choice
Firm A has a total debt to total assets ratio of 50% and an interest coverage ratio of 1.0. Firm B has a total debt total assets ratio of 80% and an interest coverage ratio of 10.0. Based on this limited information firm ________ appears to be in ________ debt management position than firm ________.
A) A, better, B
B) B, better, A
C) A, a comparable, B
D) B, lesser, A
Correct Answer:
Verified
Correct Answer:
Verified
Q112: Internally generated funds for financing new asset
Q113: Return on total assets is calculated as
Q114: The quick ratio of a firm with
Q115: The numerator of the break-even equation is
Q116: Financial leverage ratios indicate the extent to
Q118: If a firm has sales of $100,
Q119: The five basic groups of ratios are
Q120: A firm with total liabilities and owners'
Q121: Ratio analysis is a financial technique that
Q122: In cost-volume-profit analysis, a firm "breaks even"