Notifications
Clear all

banking

1 Posts
1 Users
0 Likes
592 Views
bhupendra yadav
(@bhupendra10)
Active Member
Joined: 1 year ago
Posts: 10
Topic starter  

 What is the importance of the term “Interest Coverage Ratio” of a firm in India?

  1. It helps in understanding the present risk of a firm that a bank is going to give a loan to.
  2. It helps in evaluating the emerging risk of a firm that a bank is going to give a loan to.
  3. The higher a borrowing firm’s level of Interest Coverage Ratio, the worse is its ability to service its debt.

(a) 1, 2 and 3

(b) 1 and 3 only

(c) 2 only

(d) 1 and 2 only


   
Quote
Share: