Select the ratio that each statement below most properly satisfies.
-An income statement measure of the ability of a company to service its debts
A)Dividend yield ratio
B)Current ratio
C)Debt ratio
D)Return on common stockholders' equity ratio
E)Times-interest-earned ratio
F)Quick ratio
G)Debt-to-equity ratio
H)Dividend payout ratio
I)Price-earnings ratio

Question

Quizplus · Accepted Answer

The ability of a company to service its debts can be measured by the times-interest-earned ratio, which shows how many times a company's earnings can cover its interest expenses.

Select the Ratio That Each Statement Below Most Properly Satisfies