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The Formula for Debt Service Coverage Is

Question 11

Multiple Choice

The formula for debt service coverage is


A) (Profit + Depreciation) /(Current liabilities + Long-term debt)
B) (Profit (Loss) + Interest expense + Depreciation) /(Interest expense + Principal)
C) (Interest expense + Depreciation + Amortization) /Total expense
D) Long-term debt/Equity
E) Equity/Total assets

Correct Answer:

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