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What Kind of Information Does a Company's Times-Interest-Earned Ratio Provide

Question 145

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What kind of information does a company's times-interest-earned ratio provide?


A) What proportion of the company's debts are long-term liabilities
B) What proportion of the company's assets are financed by debt, as opposed to equity
C) How well a company is positioned to pay interest expense on its debt
D) How much profit is generated by each share of stock

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