A high Debt Service Coverage Ratio indicates: Option 1: A company's potential to decrease equity component Option 2: A company's potential to increase debt component Option 3: Enhanced credit-meeting capacity Option 4: A company's potential to decrease debt component

The answer is 'A company's potential to increase debt component'. View full solution:

CUET Business Studies - A high Debt Service Coverage Ratio indicates: | PYQs + Solutions

CUET Business Studies 2026 21st May Shift 2

Business Studies

Medium

A company's potential to decrease equity component

A company's potential to increase debt component

Enhanced credit-meeting capacity

A company's potential to decrease debt component

✅ Correct Option: 2