Which of the following indicated the Debt-Service Coverage Ratio (DSCR) of 1.5 of a firm?

The total obligations (i.e. interest plus repayment on the long term loan) of the firm are 1.5 times its PBDIT

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The total obligations are 1.5 times its PAT (Profit After Tax)

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The post-tax cash earnings are are 1.5 times its total obligations.

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The post-tax earnings after depreciation are 1.5 times its total obligations.

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The total obligations are 1.5 times than equity earnings

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Solution

The correct option is C The post-tax cash earnings are are 1.5 times its total obligations.
DSCR of 1.5 indicates that the firm has post-tax cash earnings which are 1.5 times the total obligations (interest and loan repayment) in the particular year.

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Which of the following indicated the Debt-Service Coverage Ratio (DSCR) of 1.5 of a firm?

The correct option is C The post-tax cash earnings are are 1.5 times its total obligations.DSCR of 1.5 indicates that the firm has post-tax cash earnings which are 1.5 times the total obligations (interest and loan repayment) in the particular year.

The correct option is C The post-tax cash earnings are are 1.5 times its total obligations.
DSCR of 1.5 indicates that the firm has post-tax cash earnings which are 1.5 times the total obligations (interest and loan repayment) in the particular year.