
Concept explainers
a) Times interest earned: The times interest earned ratio calculates the ability of a company to pay off its debts. It is also called as interest coverage ratio.
To calculate: The times interest earned ratio
b) Debt to equity ratio: It is a ratio that indicates the soundness of long-term financial policies of a company. It also measures company’s financial leverage.
To calculate: The Debt to equity ratio
c) Earnings per share: It calculates the net income earned by the company per outstanding share.
To calculate: Earnings per share
d) Price Earnings Ratio: The price earnings ratio compares company’s stock price to its earnings per share.
To calculate: The Price Earnings Ratio
e)
To calculate: The Rate of Return on Common Stock

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Chapter 14 Solutions
Horngren's Accounting, The Financial Chapters, Student Value Edition Plus MyLab Accounting with Pearson eText - Access Card Package (12th Edition)
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