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1. The management of company A increased the estimated salvage value of the company's PP&E. What effect will that change have on the interest coverage

1. The management of company A increased the estimated salvage value of the company's PP&E. What effect will that change have on the interest coverage ratio?

a.

Increase.

b.

Decrease.

c.

No effect.

d.

Unable to determine without more information.

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