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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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