Cash flow coverage ratio

Definition:

The number of times that financial obligations (for interest, principal payments, preferred stock dividends, and rental payments) are covered by earnings before interest, taxes, rental payments, and depreciation.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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Best-interests-of-creditors test

The requirement that a claim holder voting against a plan of reorganization must receive at least as much as if the debtor were liquidated.

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