One weakness of the interest coverage ratio is that it includes only the annual interest expense as a finance expense that must be paid.

Name: One weakness of the interest coverage ratio is that it includes only the annual interest expense as a finance expense that must be paid.
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Question

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The interest coverage ratio does not consider other finance expenses such as bank fees, loan origination costs, and other non-interest financing expenses.

One Weakness of the Interest Coverage Ratio Is That It