Answer: c.
Explanation: Interest earned ratio describes and shows the degree of solvency of a business entity.
The higher the times interest earned ratio the better the business capacity to meet the interest on it debt obligation.
It also means that the company is well protected and favorable to investors. This does not necessarily means that the business entity is efficiently managing it's debts repayments. It is believed that businesses with ratio <2.5 are seen to posses a higher instability.
