In the interest coverage ratio dividend payments are included in
A)the numerator.
B)the denominator.
C)both the numerator and the denominator.
D)neither the numerator nor the denominator.

Question

Quizplus · Accepted Answer

Dividend payments are not included in the interest coverage ratio, which measures a company's ability to pay interest on its debt, focusing on earnings before interest and taxes (EBIT) and interest expenses.

In the Interest Coverage Ratio Dividend Payments Are Included in