Analysis MCQ Fundamental Analysis A company has reported operating income of $5,000,000. The bond interest expense for the year is $500,000 and principal repayments on bonds totaled $1,500,000. The company's debt service coverage ratio is:

A company has reported operating income of $5,000,000. The bond interest expense for the year is $500,000 and principal repayments on bonds totaled $1,500,000. The company's debt service coverage ratio is:

Fundamental Analysis

A company has reported operating income of $5,000,000. The bond interest expense for the year is $500,000 and principal repayments on bonds totaled $1,500,000. The company's debt service coverage ratio is:

A. 10:1

B. 3.33:1

C. 2.5:1

D. 1:1

Answer: C. 2.5:1

Analysis MCQ

A company has reported operating income of $5,000,000. The bond interest expense for the year is $500,000 and principal repayments on bonds totaled $1,500,000. The company's debt service coverage ratio is:

A company has reported operating income of $5,000,000. The bond interest expense for the year is $500,000 and principal repayments on bonds totaled $1,500,000. The company's debt service coverage ratio is:

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