Debt service coverage ratio is obtained by dividing net profit before interest and taxes by:

CS Executive · Cost and Management Accounting · PYQS · June 2018
Debt service coverage ratio is obtained by dividing net profit before interest and taxes by:
(A) Taxes
(B) Income
(C) Equity
(D) Interest charges

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Cost and Management Accounting

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