What is the purpose of an interest coverage ratio

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Reference no: EM131781426

Question: a. What is the purpose of an interest coverage ratio?

b. What does an interest coverage ratio of 1.8! mean?

c. Why are interest coverage ratios typically computed on a pretax basis?

d. Why would a fixed-charge coverage ratio be materially different from an interest coverage ratio?

Reference no: EM131781426

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