Useful ratios for benchmarking a firm's capital structure include
A)the Debt ratio.
B)Times Interest Earned ratio.
C)EBITDA coverage ratio.
D)all of the above.

Question

Quizplus · Accepted Answer

All of the above ratios are useful for benchmarking a firm's capital structure.

- The Debt ratio measures the percentage of a company's assets that are financed by debt, which gives an indication of the company's leverage and risk. 
- The Times Interest Earned ratio shows how many times a company's earnings can cover its interest payments, which is important for assessing the company's ability to meet its debt obligations. 
- The EBITDA coverage ratio measures a company's ability to cover its debt payments using its earnings before interest, taxes, depreciation, and amortization, which is useful for understanding the company's cash flow and debt servicing capacity.

Useful Ratios for Benchmarking a Firm's Capital Structure Include