The ________________________________________ Ratio Indicates the Number of Times That Net

question 77

Short Answer

The ________________________________________ ratio indicates the number of times that net income before interest expense and income taxes exceeds interest expense.

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Definitions:

Protective Covenant

A clause in a financial contract that restricts certain actions of the borrower to protect the lender's interests.

Liquidity Premium

The additional return investors demand for holding a security that is not easily convertible into cash without loss of value.

CCC/CC/C Credit Ratings

Credit ratings given by rating agencies to denote high-risk bonds that are likely to default.

Inflation Premium

The extra yield that investors demand on securities to compensate for the risk of inflation reducing the value of future cash flows.