
Interest is Big Valley's only fixed cash charge.
Big Valley's market value of equity to book value of debt ratio = 1.5.
Big Valley has a times interest earned ratio that is ________,which indicates that Big Valley has ________ long-term insolvency risk than the typical firm in the industry.
A) 4; the same
B) 3.91; less
C) 3.91; more
D) 4.58; more
E) 4.58; less
Correct Answer:
Verified
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