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  3. Study Set
    Principles of Managerial Finance
  4. Exam
    Exam 3: Financial Statements and Ratio Analysis
  5. Question
    Typically, Higher Coverage Ratios Are Preferred, but Too High a Ratio
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Typically, Higher Coverage Ratios Are Preferred, but Too High a Ratio

Question 192

Question 192

True/False

Typically, higher coverage ratios are preferred, but too high a ratio may indicate under-utilization of fixed-payment obligations, which may result in unnecessarily low risk and return.

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