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Other Fields Homework Help Accounting Topic started by: calcrismore on Jul 24, 2022



Title: Which of the following is an accurate statement regarding a company's ability to meet its long-term ...
Post by: calcrismore on Jul 24, 2022
Which of the following is an accurate statement regarding a company's ability to meet its long-term debt obligations?

▸ If the debt-to-equity ratio is too high, it may indicate that the company has used up its borrowing capacity.

▸ If the debt-to-equity ratio is too high, it may mean that available leverage is not being used to the owners' benefit.

▸ The times interest earned ratio indicates if a company can make its principal and interest payments.

▸ The key ratios that are used to measure a long-term solvency are debt to equity, return on assets, and times interest earned.


Title: Which of the following is an accurate statement regarding a company's ability to meet its long-term ...
Post by: eminemluvr87 on Jul 24, 2022
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