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Which ratio measures the number of dollars of operating earnings available to meet the firm's interest dollars and other fixed charges?
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Which ratio measures the number of dollars of operating earnings available to meet the firm's interest dollars and other fixed charges?

User PongGod
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6 votes

Answer:

The correct answer is: Fixed Charge Coverage Ratio.

Step-by-step explanation:

The Fixed Charge Coverage Ratio (FCCR) is an accounting calculation that shows a company's ability to pay its fixed costs -expenses that generally do not vary with production level. This may include leases and insurance costs. This ratio is often used by lenders to see if a company is creditworthy. The FCCR is especially helpful when a company has a lot of debt.

User Sver
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