Which one of the following statements is correct?

Corporate Finance

Which one of the following statements is correct?

If the total debt ratio is greater than .50, then the debt-equity ratio must be less than 1.0.
Long-term creditors would prefer the times interest earned ratio be 1.4 rather than 1.5.
The debt-equity ratio can be computed as 1 plus the equity multiplier.
An increase in the depreciation expense will not affect the cash coverage ratio.

The following statements correct is an increase in the depreciation expense will not affect the cash coverage ratio.

Tags: Working with Financial Statement