Which of the Following Is an Accurate Statement Regarding a Company's

Multiple Choice

Which of the following is an accurate statement regarding a company's ability to meet its long-term debt obligations?

A) If the debt-to-equity ratio is too high, it may indicate that the company has used up its borrowing capacity.
B) If the debt-to-equity ratio is too high, it may mean that available leverage is not being used to the owners' benefit.
C) The times interest earned ratio indicates if a company can make its principal and interest payments.
D) The key ratios that are used to measure a long-term solvency are debt to equity, return on assets, and times interest earned.