BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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High Interest Coverage Ratio means companies can have more of borrowed funds.
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True
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False
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Explanation:
Detailed explanation-1: -A higher interest coverage ratio means a company is more poised it is to pay its debts while the opposite is true for lower ratios. Creditors can use the ratio to decide whether they will lend to the company. A lower ratio may be unattractive to investors because it may mean the company is not poised for growth.
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