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Home Q & A Board Other Fields Homework Help Business Accounting
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Kwami Kwami
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7 years ago
The following comparison is presented for Max, Inc. to the industry averages:
   Industry
   Max, Inc.   Averages
   Debt ratio   36.6%   65.0%
   Coverage ratio   3.5   3.0
What conclusion can be drawn when comparing Max's coverage ratio to the industry average?
A) Max is able to cover its interest payments more times than the industry.
B) Max has a larger proportion of its assets financed by debt compared to the industry.
C) Max has a smaller proportion of its assets financed by debt compared to the industry.
D) Max must cover more interest payments than the industry average.
Textbook 
Survey of Accounting: Making Sense of Business

Survey of Accounting: Making Sense of Business


Edition: 1st
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hol23hol23
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7 years ago
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Kwami Author
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#2
7 years ago
This really helped
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