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Did anyone notice that in Maginn & Tuttle, "Managing Investment Portfolios:
A Dynamic Approach," the interest coverage ratio is defined differently in
Chapters 4 (page 53) and Chapter 6 (Page 23). It looks as if they are
reciprocals.
Chapter 4 Definition: The interest coverage ratio is defined as interest
plus earnings divided by interest.
Chapter 6 Definition: The interest coverage ratio is equal to interest
expense, inclusive of capitalized interest and some lease rental expense,
divided into earnings before the deduction of this interest expense and
taxes.
Does anybody know which definition is customarily used?
Regards,
Karl Goring
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Did anyone notice that in Maginn & =Tuttle, "Managing Investment Portfolios: A Dynamic Approach," the =interest coverage ratio is defined differently in Chapters 4 (page 53) =and Chapter 6 (Page 23). It looks as if they are =reciprocals.
Chapter 4 Definition: The interest =coverage ratio is defined as interest plus earnings divided by =interest.
Chapter 6 Definition: The =interest coverage ratio is equal to interest expense, inclusive of =capitalized interest and some lease rental expense, divided into =earnings before the deduction of this interest expense and =taxes.
Does anybody know which definition is =customarily used?
Regards,
Karl Goring