Question

owners of bonds would prefer

1> a debt ratio of 60 percent to a debt ratio of

40 percent

2> a debt ratio of 40 percent to a debt ratio of

60 percent

3> a timesinterestearned of 5.1 to a

times-interest-earned of 3.9

4> a timesinterestearned of 3.9 to a

times-interest-earned of 5.1

a. 1 and 3

b. 1 and 4

c. 2 and 3

d. 2 and 4

Answer

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