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Suppose We Calculate a Times Interest Earned Ratio of 29

Question 109

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Suppose we calculate a times interest earned ratio of 29 for Colgate-Palmolive. We can conclude


A) Colgate-Palmolive may experience some difficulty meeting it's interest payments.
B) Colgate-Palmolive is very unlikely to have difficulty meeting it's interest payments.
C) Colgate-Palmolive has $29 of operating cash flow for every dollar of interest expense.
D) Colgate-Palmolive's EBITDA is 29 times larger than its interest expense.

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