Suppose we calculate an interest coverage ratio of 29 for Colgate-Palmolive.We can conclude
A) Colgate-Palmolive may experience some difficulty meeting its interest payments.
B) Colgate-Palmolive is very unlikely to have difficulty meeting its interest payments.
C) Colgate-Palmolive has $29 of operating cash flow for every dollar of interest expense.
D) Colgate-Palmolive's EBITDA is 29 times larger than its interest expense.
Correct Answer:
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