Fundamentals of Corporate Finance, Student Value Edition
Fundamentals of Corporate Finance, Student Value Edition
3rd Edition
ISBN: 9780133576863
Author: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Publisher: PEARSON
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Chapter 2, Problem 26P
Summary Introduction

Interest coverage ratio: Interest coverage ratio is that ratio, which measures the leverage of the company. It is an assessment made by the lenders of the firm. It is an assessment that how the corporation will cover the interest payments. It is equal to measure of income divided by the value of interest. It is also known as times interest earned ratio.

To determine:

The interest coverage ratio.

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Fundamentals of Corporate Finance, Student Value Edition

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Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License