Multiple Choice
A times-interest-earned (TIE) ratio that is less than 1 suggests that a firm _____.
A) is using a low proportion of debt financing in its capital structure
B) has a low probability of defaulting on its loans
C) might not be able to meet its annual interest obligations on its debt
D) is financed with equity only
E) has an extremely low debt/assets ratio
Correct Answer:
Verified
Correct Answer:
Verified
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