A municipal revenue bond indenture contains a net revenue pledge. The following are reported for the year: $30 million of gross revenues, $18 million of operating expenses, $4 million of interest expenses, and $2 million of principal repayment. What is the debt service coverage ratio?
A) 9:1.
B) 3:1.
C) 2:1.
D) 5:1.
Answer: C) 2:1.