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contestada

The lower the times interest earned ratio the more likely

A) a business will need to borrow money

B)a business will suffer a loss

C)a default in payment will occur

D)interest payments can be made​

Respuesta :

MrCreighton

A higher times interest earned ratio is more favorable. It is very likely with a low ratio that a default in payment will occur because the company would not have enough money to cover outstanding interest cost.

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