In calculating the ratio times fixed payments earned, after-tax interest payments are added back in the denominator.

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In calculating the ratio times fixed payments earned, after-tax interest payments are added back in the denominator. Why?

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Personal Financial Planning

ISBN: 978-1259277184

2nd edition

Authors: Lewis J. Altfest

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Question Posted: May 05, 2017 10:18 AM

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In calculating the ratio times fixed payments earned, after-tax interest payments are added back in the denominator.

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Because pretax interest was included in cash flow from operations and taxes ...View the full answer

Personal Financial Planning

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