Which of the Following Is Correct

Which of the following is correct?

A) The times interest earned ratio is considered a better test of the ability to cover interest charges than the cash coverage ratio.
B) The debt-to-equity ratio shows the relative proportion of total assets financed by debt.
C) The higher the debt-to-equity ratio,the higher the potential return to the stockholders,but also the higher risk to stockholders.
D) The cash coverage ratio compares the cash generated by a company to its cash obligations for the prior period.

Correct Answer:

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