A times interest earned ratio of 0.90 to 1 means:

a. that the firm will default on its interest payment.
b. that net income is less than the interest expense.
c. that the cash flow is less than the net income.
d. that the cash flow exceeds the net income.
e. none of the answers are correct.


B

Business

You might also like to view...

The key purpose of social media metrics is to ________

A) determine social media opinion leaders B) analyze mobile device usage C) search consumer purchasing activity D) measure social media's ROI

Business

In which of the following situations does a battery occur?

a. Johnson is tackled during a college football game he is playing in and suffers an injury to his back. b. O'Grady is injured by a punch in the nose received by a boxing opponent during a boxing match. c. Biggs is hit in the head by a wild pitch and seriously injured while batting in a hardball game. d. Williams is deliberately tripped and seriously injured by an unfriendly movie patron trying to get ahead of Williams in the ticket line.

Business

Bacon Signs Inc. has planned a 3-month issue of commercial paper with a face value of $15,000,000. The paper is set to sell at 99.5% of face value. What is the 3-month interest rate?

A) 0.5000% B) 0.5025% C) 0.5035% D) 0.5050%

Business

Each customer entering a department store will either buy or not buy some merchandise. An experiment consists of following 4 customers and determining whether or not they purchase any merchandise. How many sample points exist in the above experiment? (Note that each customer is either a purchaser or non-purchaser.)

a. 2 b. 4 c. 12 d. 16

Business