A lending institution would prefer that a firm have a ________ debt-equity ratio and a ________ times interest earned ratio.
A) higher; higher
B) higher; lower
C) lower; higher
D) lower; lower
Answer: C
A lending institution would prefer that a firm have a ________ debt-equity ratio and a ________ times interest earned ratio.
A) higher; higher
B) higher; lower
C) lower; higher
D) lower; lower
Answer: C