Question
A firm has total assets of ₹200 lakhs, intangible
assets worth ₹50 lakhs, current assets worth ₹60 lakhs, current liabilities of ₹40 lakhs, and total debt including preference shares of ₹80 lakhs. What is the Asset Coverage Ratio?Solution
Given: • Total Assets = ₹200 lakh • Intangible Assets = ₹50 lakh → So, Tangible Assets = ₹200 - ₹50 = ₹150 lakh • Current Liabilities = ₹40 lakh • Total Debt (including preference shares) = ₹80 lakh Step-by-Step Calculation: Answer: C. 1.38
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