The times-interest-earned ratios of four companies are given below: $$\begin{array} { | l | r | }
\hline \text { Forge Corp. } & 8.9 \
\hline \text { Fellow, Inc. } & 9.2 \
\hline \text { Stacy Corp. } & 6.7 \
\hline \text { Bennett, Inc. } & 13.5 \
\hline
\end{array}$$ Which of the above companies has the highest debt-paying ability?

Question

The times-interest-earned ratios of four companies are given below: $$\begin{array} { | l | r | } 
\hline \text { Forge Corp. } & 8.9 \
\hline \text { Fellow, Inc. } & 9.2 \
\hline \text { Stacy Corp. } & 6.7 \
\hline \text { Bennett, Inc. } & 13.5 \
\hline
\end{array}$$ Which of the above companies has the highest debt-paying ability?

Quizplus · Accepted Answer

Bennett, Inc. has the highest times-interest-earned ratio of 13.5, indicating the strongest ability to pay its debt obligations.

The Times-Interest-Earned Ratios of Four Companies Are Given Below Which of the Above Companies Has the Highest Debt-Paying Ability