When the Firm Keeps Its Interest Payments to a Target

question 90

Multiple Choice

When the firm keeps its interest payments to a target fraction of its FCF,we say it has a(n) ________ interest coverage ratio.

• A) constant
• B) average
• C) variable
• D) zero

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Definitions:

Corporate Philanthropy

The act of corporations donating some of their profits or resources to charitable causes.

Managers and Employees

The relationship and roles within an organizational hierarchy where managers oversee operational or departmental tasks and employees carry out those tasks according to guidelines.

Occupational Safety and Health Administration (OSHA)

A federal agency responsible for enforcing safety and health legislation to prevent workplace injuries, illnesses, and deaths.