# Times Interest Earned and Long-term Debt to Equity

What is the effect (increase, decrease, no effect) of a cash dividend payment on the following ratios (all else equal) Times Interest Earned and Long-term Debt to Equity?

What is the effect (increase, decrease, no effect) of selling inventory for profit on the following ratios (all else equal) Times Interest Earned and Long-term Debt to Equity?

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#### Solution Preview

Times Interest Earned = EBIT/Interest

Long-term Debt to Equity= Long term Debt/Equity

What is the effect (increase, decrease, no effect) of a cash dividend payment on the following ratios (all else equal) ...

#### Solution Summary

EBIT effects are evaluated.

$2.49