2020 Economy - Corporate Finance, Banking

What is the importance of the term "Interest Coverage Ratio" of a firm in India?1. It helps in understanding the present risk of a firm that a bank is going to give loan to.2. It helps in evaluating the emerging risk of a firm that a bank is going to give loan to.3. The higher a borrowing firm's level of Interest Coverage Ratio, the worse is its ability to service its debt.Select the correct answer using the code given below:

• 1 and 2 only
• 2 only
• 1 and 3 only
• 1, 2 and 3