The debt to equity ratio and interest-coverage ratio for Vega Corporation for the last two years are as follows: Which of the following conclusions could be made about Vega Corporation?
A) The company is less able to pay its interest costs in 2020.
B) The company is better able to pay its interest costs in 2020.
C) The company has more debt outstanding in 2020.
D) The company is less risky in 2020.

Question

The debt to equity ratio and interest-coverage ratio for Vega Corporation for the last two years are as follows:  Which of the following conclusions could be made about Vega Corporation?
A) The company is less able to pay its interest costs in 2020. 
B) The company is better able to pay its interest costs in 2020. 
C) The company has more debt outstanding in 2020. 
D) The company is less risky in 2020.

Quizplus · Accepted Answer

The Answer of The debt to equity ratio and interest-coverage ratio for Vega Corporation for the last two years are as follows:  Which of the following conclusions could be made about Vega Corporation?
A) The company is less able to pay its interest costs in 2020. 
B) The company is better able to pay its interest costs in 2020. 
C) The company has more debt outstanding in 2020. 
D) The company is less risky in 2020.

The Debt to Equity Ratio and Interest-Coverage Ratio for Vega