Corporate Finance
Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
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Chapter 18.6, Problem 1CC
Summary Introduction

To discuss: The condition the firm must meet to have a constant interest coverage policy.

Introduction:

The constant interest coverage policy is when the firm keeps its interest payments to target fraction of its free cash flow.

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