Question
What advantage does the fixed charge coverage ratio offer over simply using times interest earned? Is there any validity in rule-of-thumb ratios for all corporations,
What advantage does the fixed charge coverage ratio offer over simply using times interest earned? Is there any validity in rule-of-thumb ratios for all corporations, such as a current ratio of 2 to 1 or debt to assets of 50 percent? Why is trend analysis helpful in analyzing ratios?
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Finance And Financial Markets
Authors: Keith Pilbeam
3rd Edition
023023321X, 978-0230233218
