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    • Question

      A company shows cash available for debt service of ₹18

      crore next year. Term loan repayment due is ₹15 crore and interest payable is ₹6 crore. The bank wants to compute DSCR strictly as per standard definition. What is the DSCR?
      A 0.85 Correct Answer Incorrect Answer
      B 0.90 Correct Answer Incorrect Answer
      C 1.00 Correct Answer Incorrect Answer
      D 1.20 Correct Answer Incorrect Answer
      E 1.50 Correct Answer Incorrect Answer

      Solution

      DSCR = 18 / 21 = 0.86 ≈ 0.90.

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