Which of the following will decrease the interest coverage ratio of a firm?
A. An increase in the interest rate paid on outstanding debt.
B. Deciding to depreciate an asset over 15 years instead of 10 years.
C. A reduction in working capital.
D. A reduction in the tax Rate.
E. A. Reduction in share capital of the firm.
Security Analysis
Posted Jul 28, 2016 03:40
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Which of the following will decrease the interest coverage ratio of a firm?
A. An increase in the interest rate paid on outstanding debt.
B. Deciding to depreciate an asset over 15 years instead of 10 years.
C. A reduction in working capital.
D. A reduction in the tax Rate.
E. A. Reduction in share capital of the firm.
A. An increase in the interest rate paid on outstanding debt.
B. Deciding to depreciate an asset over 15 years instead of 10 years.
C. A reduction in working capital.
D. A reduction in the tax Rate.
E. A. Reduction in share capital of the firm.
