If a Firm Has Both Interest Expense and Lease Payments

question 90

Multiple Choice

If a firm has both interest expense and lease payments,

• A)times interest earned will be smaller than fixed charge coverage.
• B)times interest earned will be greater than fixed charge coverage.
• C)times interest earned will be the same as fixed charge coverage.
• D)fixed charge coverage cannot be computed.

---

Definitions:

Demand

The desire of purchasers, consumers, clients, or buyers for a product or service, coupled with the capacity to pay for it.

Demand

The willingness and ability of consumers to purchase goods and services at various price points, at a given time.

Prices

Prices are the amounts of money expected, required, or given in payment for something.

Good

In economics, it refers to a material item that satisfies some human desire or need. Goods can be tangible, like a book, or intangible, like a service.