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Which of the following is a FALSE statement about the interest coverage ratio? Select one: a. Interest coverage ratio is a solvency ratio. b. Interest
Which of the following is a FALSE statement about the interest coverage ratio? Select one: a. Interest coverage ratio is a solvency ratio. b. Interest coverage expense is directly related to the firm's earnings. c. Interest coverage ratio = interest expense/operating profit d. Interest coverage ratio measures the company's ability to pay the interest expense on its debt. e. The higher the interest coverage ratio, the better the company's ability to cover it interest expense
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