Which of the Following Represents the Interest Coverage Ratio

question 39

Multiple Choice

Which of the following represents the interest coverage ratio?

• A) Net income ÷ interest
• B) [Net income + (interest × (1 - tax rate))] ÷ interest
• C) Income before interest but after taxes ÷ interest
• D) Income before interest , taxes and depreciation ÷ interest

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Definitions:

Process Theories

Examine the thought processes that motivate individual behavior.

Maslow's Model

A theory in psychology proposed by Abraham Maslow, often depicted as a hierarchy of needs, suggesting that people are motivated by fulfilling basic needs before moving on to other, more advanced needs.

Five-Step Hierarchy

A structured series of levels or stages in a particular process or system, often outlined in a progressive manner.

Direction

Guidance or supervision provided by leadership to help individuals or groups understand their tasks and navigate their efforts towards achieving objectives.