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The interest coverage ratio is defined as EBITDA/Interest Expense. a. What does an interest coverage ratio greater than 1.0X mean? What does 1.8X mean? Why

The interest coverage ratio is defined as EBITDA/Interest Expense.

a. What does an interest coverage ratio greater than 1.0X mean? What does 1.8X mean?

  1. Why are interest coverage ratios computed pretax?

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