Why will the fixed-charge-coverage ratio always be equal to or less than times interest earned?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 17Q: What is the difference between the discount rate used for net present value and the internal rate of...
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Why will the fixed-charge-coverage ratio always be equal to or less than times interest earned?

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