Glossary: Coverage Coverage - the number of times income will meet (or exceed) the fixed charges. For municipal bonds coverage is the net revenues divided by annual debt service. To determine corporate interest coverage take the EBIT divided by the interest expense. For preferred dividend coverage; Take net income and divide it by the preferred dividends.

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Coverage - some related terms: Munis Debt service EBIT Fixed charges Preferred dividend coverage Dividends Preferred Stock Additional bonds test Bond interest coverage Preferred dividend coverage Rate covenant