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Question(s) / Instruction(s):

If the times interest ratio:

a.            Increases, then risk increases.

b.            Increases, then risk decreases.

c.             Is greater than 1.5, then the company is in default.

d.            Is less than 1.5, the company is carrying too little debt.

e.            Is greater than 1.5, the company is likely carrying too much debt.

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