From the following information, calculate Interest Coverage Ratio: 10,000 Equity Shares of ₹ 10 each ₹ 1,00,000
From the following information, calculate Interest Coverage Ratio:
[Ans.: Interest Coverage Ratio = 9.4 Times.]
[Hint: Profit before Interest and Tax is ₹ 94,000 (i.e., ₹ 75,000 + ₹ 9,000 + ₹ 5,000.]
| 10,000 Equity Shares of ₹ 10 each | ₹ 1,00,000 |
| 8% Preference Shares | ₹ 70,000 |
| 10% Debentures | ₹ 50,000 |
| Long-term Loans from Bank | ₹ 50,000 |
| Interest on Long-term Loans from Bank | ₹ 5,000 |
| Net Profit after Tax | ₹ 75,000 |
| Tax | ₹ 9,000 |
Anurag Pathak Changed status to publish August 14, 2023
