Business Studies, asked by arunparakh6, 8 months ago

how does ICR and dscr affect choice of capital structure​

Answers

Answered by mary724
1

(3) Debt Service Coverage Ratio-DSCR:

This ratio removes the weakness of ICR. This shows the cash flow position of the company. ... Better ratio means the better capacity of the company for debt payment. Consequently, more debt can be utilised in the capital structure.

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