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Which of the following is a TRUE statement about the interest coverage ratio? Select one: a . Interest coverage ratio = revenues / interest expense.
Which of the following is a TRUE statement about the interest coverage ratio?
Select one:
a Interest coverage ratio revenuesinterest expense.
b The lower the interest coverage ratio, the better the company's ability to cover its interest expense.
c Interest coverage ratio measures the company's ability to meet the interest expense on its debt.
d Interest coverage ratio is a profit ratio.
e Interest coverage expense is directly related to the firms earnings.
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