Multiple Choice
A times-interest-earned (TIE) ratio of less than 1 indicates _____.
A) a less debt in the capital structure of the firm
B) a low probability that the firm will default
C) the firm's inability to meet its annual interest obligations
D) that the firm is financed only by equity
E) that the debt/assets ratio of the firm is very low
Correct Answer:
Verified
Correct Answer:
Verified
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