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Constant Interest Coverage Policy and Leveraged Value

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How is the levered value of a project impacted by a constant interest coverage policy?

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Key terms: Times interest earned, interest coverage, leverage debt

The amount of corporate debt can indicate whether a corporation can borrow money at an affordable interest rate, and/or remain financially strong. As a result many corporations have instituted constant interest coverage policies to ensure various ...

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Constant Interest Coverage Policy

What is a constant interest coverage policy and how does it impact the levered value of a project?

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