Which of the Following Describes the Interest Coverage Ratio

question 56

Multiple Choice

Which of the following describes the interest coverage ratio?

• A)Income before income taxes plus interest expense divided by interest expense
• B)Income after 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:

Marginal Cost

The elevation in full costs that come from generating an additional unit of a good or service.

Average Cost

The total cost divided by the number of goods produced, representing the per unit cost of production.

Market Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by all consumers in the market.

Monopoly

is a market structure characterized by a single seller, selling a unique product in the market without any direct competition.