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If the interest coverage ratio is too high, then the ROE is too low, Agree or Not...

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Finance

Ifthe interest coverage ratio is too high, then the ROE is too low,Agree or Not ?
What the three factor affect ROE and how higher ROE lead tohigher share price ?

Answer & Explanation Solved by verified expert
3.8 Ratings (706 Votes)
1NODo not agree Interest coverage ratioEBITInterest expense Return on EquityNet incomeTotal Equity If interest coverage ratio is too high it means that either 1EBIT ie Earnings before interest taxes is high OR    See Answer
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