An important aspect of the firm’s reorganization plan is the recapitalization of the firm’s capital structure. The goal of restructuring the firm’s debt includes all of the following EXCEPT
A. providing a reasonable level of earnings for the owners.
B. exchanging debt for equity.
C. reducing the fixed-payment obligations.
D. decreasing the times interest earned ratio.
Answer:D
An important aspect of the firm’s reorganization plan is the recapitalization of the firm’s capital structure. The goal of restructuring the firm’s debt includes all of the following EXCEPT
A. providing a reasonable level of earnings for the owners. B. exchanging debt for equity. C. reducing the fixed-payment obligations. D. decreasing the times interest earned ratio.