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    • Question

      A firm’s EBIT is ₹20 lakh and interest is ₹5 lakh.

      What is interest coverage ratio?
      A 3x Correct Answer Incorrect Answer
      B 5x Correct Answer Incorrect Answer
      C 4x Correct Answer Incorrect Answer
      D 2x Correct Answer Incorrect Answer

      Solution

      ICR = EBIT / Interest = 20 / 5 = 4 times

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