(CMA adapted, Jun 90 #20) Regarding the data for Ramer Company and Matson Company, the attitudes of both Ramer and Matson concerning risk are best explained by the
A)current ratio, accounts receivable turnover, and inventory turnover.
B)return on investment and dividend payout ratio.
C)current ratio and earnings per share.
D)debt-equity ratio and interest coverage ratio.
E)none of the above.

Question

Quizplus · Accepted Answer

The debt-equity ratio and interest coverage ratio are financial metrics that directly relate to a company's financial risk and its ability to cover its debt obligations, respectively. These ratios can indicate a company's attitude towards leveraging and risk management, making them relevant for understanding attitudes concerning risk.

(CMA Adapted, Jun 90 #20) Regarding the Data for Ramer