Multiple Choice
As a short-term creditor concerned with a company's ability to meet its financial obligation to you,which one of the following combinations of ratios would you most likely prefer?
Current Debt
Ratio TIE ratio
A) 0.5 0.5 0.33
B) 1.0 1.0 0.50
C) 1.5 1.5 0.50
D) 2.0 1.0 0.67
E) 2.5 0.5 0.71
Correct Answer:
Verified
Correct Answer:
Verified
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