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Interest Coverage Ratio is also known as:
ADSCR
BEquity Multiplier
CCapital Gearing Ratio
DTimes Interest Earned Ratio
Answer & Solution
Correct answer: D. Times Interest Earned Ratio
1. Interest Coverage Ratio = EBIT / Interest.
2. Also called Times Interest Earned ratio.
3. Measures the margin of safety in meeting interest obligations.
_Source: ICAI BoS CA Inter Paper 6A, Ch 3 "Financial Analysis and Planning — Ratio Analysis", §3.2.2(b)_