The denominator while calculating Interest coverage ratio is __________.

All interest expenses

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Interest on long-term debts

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Interest on short-term debts

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All of these

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Solution

The correct option is B
Interest on long-term debts

The denominator while calculating Interest coverage ratio is interest on long-term debts

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Similar questions

A higher value of interest coverage ratio ratio indicates __________ relative to debts.

From the following details, calculate interest coverage ratio: Net Profit after tax Rs. 60,000; 15% Long-term debt 10,00,000; and Tax rate 40%.

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