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1. The financial ratio measured as earnings before interest and taxes, divided by interest expense is the:
a. cash coverage ratio.
b. debt-equity ratio.
c. times interest earned ratio.
d. gross margin.
e. total debt ratio.
2. The External Funds Needed (EFN) equation does not measure the:
a. Additional asset requirements given a change in sales.
b. Additional total liabilities raised given the change in sales.
c. Rate of return to shareholders given the change in sales.
d. Net income expected to be earned given the change in sales.
e. None of the above.
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