In 2003, the average corporate times-interest-earned ratio was about ______, having fallen steadily from above____________in the late-1970s.

Question

Quizplus · Accepted Answer

According to the statement, the average corporate times-interest-earned ratio in 2003 was about 3x and it had fallen steadily from above 5x in the late-1970s. Therefore, the best choice is C, which shows an average ratio of 3x and a previous high ratio of 5x, indicating a decline in the ratio over time. Choices A, B, and D either have incorrect values for the average or high ratios or do not show a decline in the ratio over time.

In 2003, the Average Corporate Times-Interest-Earned Ratio Was About ______