Examlex
Which of the following statements has all of the necessary criteria for a well-written outcome?
Fixed Charge Coverage
A financial ratio that measures a company's ability to cover its fixed charges, such as interest and lease expenses, with its earnings before interest, taxes, depreciation, and amortization (EBITDA).
Dividends
Dividends are portions of a company's earnings paid out to shareholders as a reward for their investment.
Company's Ability
A company's capacity to execute its strategies, achieve its objectives, and fulfill its operational requirements effectively.
Negative Covenant
A clause in a loan agreement that restricts the borrower from certain actions, such as limiting dividend payments to shareholders or borrowing additional funds, to protect the lender's interests.
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