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Author Question: Which of the following statements is correct? (Read 37 times)

mmmmm

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Which of the following statements is correct?

The D/E ratio measures the extent to which operating income can decline before the firm is unable to meet its annual interest costs. 


EBIT can represent all the cash flow available to service debt, especially if a firm has high depreciation and/or amortization charges. So, the TIE ratio is very useful.


The TIE ratio takes all of the “cash” earnings into account in the numerator and the financial charges in the denominator.


The EBITDA coverage ratio is most useful for relatively short-term lenders such as banks, which rarely make loans (except real estate–backed loans) for longer than about 5 years.



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Marked as best answer by mmmmm on Aug 7, 2023

kalimarie

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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mmmmm

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)


mochi09

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Reply 3 on: Yesterday
Excellent

 

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