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The Interest-Coverage Ratio Is Calculated as

Question 23

Multiple Choice

The interest-coverage ratio is calculated as


A) (net income - taxes - interest - depreciation) ÷ interest.
B) (net income + taxes - interest - depreciation) ÷ interest.
C) (net income + interest + depreciation) ÷ interest.
D) (net income + taxes + interest + depreciation) ÷ interest.

Correct Answer:

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