Which ratio is frequently used in conjunction with the analysis of a bond's quality?
A)times interest earned
B)deferred liability ratio
C)receivables turnover
D)dividend coverage ratio

Question

Quizplus · Accepted Answer

The ratio frequently used in conjunction with the analysis of a bond's quality is the times interest earned ratio. This ratio indicates a company's ability to fulfill its interest obligations on its debt, which is crucial for bondholders as they rely on interest payments for income.

Which Ratio Is Frequently Used in Conjunction with the Analysis