Debt service coverage ratio
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
06 April 2013
a business concern always wants to use some debt capital within the statutory upper limit i.e 2:1 debt equity ratio.therefore,a firm may plan to repay one long term loan by tapping another long term source.in that case the denominator used in the debt service coverage ratio seems to be unreasonably high
plz explain this paragaph
plz explain this paragaph
28 May 2013
you increase the creditors and partly take another T/L
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