📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    A firm’s EBIT is ₹5,00,000. It pays ₹50,000 in

    interest and ₹1,20,000 in tax. What is the Interest Coverage Ratio?
    A 5.0 Correct Answer Incorrect Answer
    B 8.0 Correct Answer Incorrect Answer
    C 10.0 Correct Answer Incorrect Answer
    D 3.5 Correct Answer Incorrect Answer
    E 6.0 Correct Answer Incorrect Answer

    Solution

    Interest Coverage Ratio = EBIT / Interest = ₹5,00,000 / ₹50,000 = 10.0

    Practice Next
    ask-question