Dscr gives the capacity of borrower to repay long term debt usually term loan.in other terms it decide how much loan a party can afford. Hense B is right. Dscr = (PAT+depreciation+intt on term loan)/principal+ intt.
DSCR-debt service coverage ratio, through this we get that how much debt could be financed, here all the details like loan amt, roi, period, installment, income, expense , etc are already given , through all these we just calculate coverage ratio means repayment capacity. Ans for the question is B - DSCR determines the capacity to raise loan.
