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      Question

      Which of the following ratio does not measure profitability?

      A Profit margins Correct Answer Incorrect Answer
      B Cash coverage ratio Correct Answer Incorrect Answer
      C Return of Equity Correct Answer Incorrect Answer
      D Return on Assets Correct Answer Incorrect Answer
      E All of the above measure profitability Correct Answer Incorrect Answer

      Solution

      The cash coverage ratio is useful for determining the amount of cash available to pay for a borrower's interest expense, and is expressed as a ratio of the cash available to the amount of interest to be paid.

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