The banker that is considering loaning a firm money for ten years would most likely prefer the firm have a debt ratio of <u>0.35</u> and a times interest earned ratio of <u>3.00</u>.
<h3>What is a debt ratio?</h3>
In accounting, it refers to the financial ratio that measures the extent of a company’s leverage; it is the ratio of the total debt to total assets that is expressed as a decimal or percentage. A debt ratio also be interpreted as the proportion of a company’s assets that are financed by debt.
A debt ratio that is greater than 1 shows that a considerable amount of a company's assets are funded by debt and this means the company has more liabilities than assets; that is, a high ratio indicates that a company may be at risk of default on its loans if interest rates suddenly rise.
But the debt ratio that is below 1 means that a greater portion of a company's assets is funded by equity.
Also, the times interest earned ratio means the measurement of a company's ability to meet its debt obligations based on its current income.
The best options is that the banker that is considering loaning a firm money for ten years would most likely prefer the firm have a debt ratio of <u>0.35</u> and a times interest earned ratio of <u>3.00</u>.
Therefore, the Option D is correct.
Missing options '.75; .75, .40; 2.50, .50; 1.00, .35; 3.00, .45; 1.75
Read more about debt ratio
brainly.com/question/21406342
#SPJ1