Useful Ratios for Benchmarking a Firm's Capital Structure Include

question 24

Multiple Choice

Useful ratios for benchmarking a firm's capital structure include

• A)the Debt ratio.
• B)Interest Coverage ratio.
• C)EBITDA coverage ratio.
• D)all of the above.

---

Definitions:

Gross Income

The total revenue received before any deductions or allowances, typically in the context of business revenues or individual wages before taxes.

Deductions

Amounts subtracted from gross income to reduce taxable income, including certain expenses, contributions, and allowances.

Sales Tax

A tax imposed by a government on the sale of goods and services, usually calculated as a percentage of the sales price.

Excise Tax

A tax imposed on specific goods, services, or transactions, often included in the price of the product, like fuel, tobacco, and alcohol.