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:

What is the importance of the term "Interest Coverage Ratio" of a firm

1.	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:
A.	1 and 2 only
B.	2 only
C.	1 and 3 only
D.	1, 2 and 3
Answer» B. 2 only