Debtors are interested in the times interest earned ratio because they want to a. know the tax effect of lending to a corporation b. be sure their debt is backed by collateral c. know what rate of interest the corporation is paying d. have adequate protection against a potential drop in earnings jeopardizing their interest payments

d.have adequate protection against a potential drop in earnings jeopardizing their interest payments

Explanation:

The Times Interest Earned Ratio is a measure that allows for the analysis of if a company can keep up it's debt payments.

It is calculated by dividing the Earnings before Interest and Tax by the Interest Expense of the debt.

The higher the number, the better because it means that they can keep up debt payments several times over.

As Debtors therefore, this figure is important because missing a debt payment is very bad for credit ratings and this matrix helps them realise if they can keep paying for debt even if their Earnings drop.

answer; ///i believe the correct   answer is (e) transformational;

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.