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The difference arose from a CFA question that I came across in the text books where in the question interest costs were capitalized for a building project. 106 xsi In the answers it stated that the coverage ratio does not change with respect to expensing 106 xsi as the ratio includes total interest payments. However in Schweser it explicting says that capitalizing 106 xsi interest costs increases the interest coverage ratio. This is with regard to Q8 on pg33 CFA Level II Volume 2 FRA text book. Thanks 106 xsi
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