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    Question

    A company has Sales ₹400 crore, EBITDA ₹60 crore,

    Interest ₹20 crore, Depreciation ₹15 crore, Tax ₹5 crore. What is the Cash Profit and Interest Coverage Ratio?
    A CP 40 & ICR 2.0 Correct Answer Incorrect Answer
    B CP 45 & ICR 2.5 Correct Answer Incorrect Answer
    C CP 50 & ICR 3.0 Correct Answer Incorrect Answer
    D CP 55 & ICR 3.0 Correct Answer Incorrect Answer
    E CP 60 & ICR 2.5 Correct Answer Incorrect Answer

    Solution

    Cash Profit = PBT + Dep EBIT = 60 PBT = 60 – 20 = 40 Cash Profit = 40 + 15 = 55  ICR = 60 / 20 = 3.0

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