Examlex
The higher the number of times interest charges are earned ratio,the better the creditors' protection.
Straight-line Depreciation
A method of allocating the cost of a tangible asset over its useful life in equal yearly amounts.
Net Income
The comprehensive earnings of a corporation after expenses and taxes have been taken away from its revenues.
Discount Rate
A rate used to determine the present value of future cash flows, reflecting the time value of money and risk of the cash flows.
Profitability Index
A calculation that determines the relative profitability of an investment, indicating the value created per unit of investment.
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