The Interest Coverage Ratio Is Calculated As

question 6

Multiple Choice

The interest coverage ratio is calculated as:

• A) debt to total assets
• B) interest expense to total assets
• C) interest expense to total debt
• D) operating profit before interest to interest expenst

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Definitions:

Advantages

Benefits or strengths that give an entity a favorable or superior position relative to competitors or alternatives.

Disadvantages

The negative aspects or conditions that can lead to unfavorable outcomes or reduce effectiveness in a given context.

Efficient Tax

A tax imposed in such a way that it creates the least possible distortion or inefficiency in the market or economy.

Costs Of Taxes

The economic burdens and inefficiencies that taxes impose on individuals and markets, including the distortion of consumer and producer behavior.