Most Visted Geting Started My USC Aken-Black The true Story of Poca. E connect Q

Question

Most Visted Geting Started My USC Aken-Black The true Story of Poca. E connect Quesnon 49 (of 80 49 developing target ratios for your firm Which set of ratios represents the best terget mix cansidering that you wand You would ske to borrow money three years from now 10 bura a new bulding In prepaation for applying for that to to an outside Snanang in the relatively near future? O Times interest earned-17 debt equty ratio-6 O Times unterest earned-15, debt equaty rti-12 O cash coverege ratio " B, debt-egity ratio O Cash coverage ratio 26 detbl equity retio 3 O Cash coverage ratio 5, hota debt retho

Explanation / Answer

Keeping into consideration that there could be a possibility of raising a loan in the near future. The company needs to keep its cash coverage ratio at a decent level of 2.6, and also maintain a debt equity ratio of somewhat 0.3. So that it would be easy to raise loan.

The correct option is the third one . Cash Coverage ratio = 2.6, and Debt equity ratio = 0.3

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