What is the important of the term “Interest Coverage Ratio” of a firm in India?
It helps in understanding the present risk of a firm that a bank is going to give loan to.
It helps in evaluating the emerging risk of a firm that a bank is going to give loan to.
The higher a borrowing firm’s level of Interest Coverage Ratio the worse is its ability to service its debt.
Select the correct answer using the code given below:
a. 1 and 2 only
b. 2 only
c. 1 and 3 only
d. 1, 2 and 3