Which of the Following Describes the Interest Coverage Ratio

question 108

Multiple Choice

Which of the following describes the interest coverage ratio?

• A) Income after income taxes plus interest expense divided by interest expense
• B) Income before income taxes plus interest expense divided by interest expense
• C) Income after income taxes divided by interest expense
• D) Income before income taxes minus interest expense divided by interest expense

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Definitions:

Tests Of Significance

Statistical tests used to determine whether the results of a study are likely to be due to chance or represent genuine effects.

Arithmetic Mean

The sum of a set of numbers divided by the count of numbers in the set, commonly known as the average.

Effect Size

An objective, standardized way of describing the strength of the independent variable’s influence on the dependent variable.

P Value

A statistical measure that helps scientists determine the significance of their research results.