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    Exam 12: Designing an Optimal Capital Structure
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    The Interest Coverage Ratio Is Equal To
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The Interest Coverage Ratio Is Equal To

Question 20

Question 20

Multiple Choice

The interest coverage ratio is equal to:


A) EBIT/interest.
B) interest/EBIT.
C) (debt + equity) /EBIT.
D) EBIT * interest.

Correct Answer:

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