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6 October, 08:02

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

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Answers (1)
  1. 6 October, 10:50
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    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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