Question: Interest coverage ratio can be numerically expressed in the form of the following equation: - Question 5 6 Answer a . ( Net profit before

Interest coverage ratio can be numerically expressed in the form of the following equation:-
Question 56Answer
a.
(Net profit before interest and tax/interest on long-term debts)
b.
(Interest on long-term debts / Net profit before interest and tax)
c.
(Net profit after interest / interest on long-term debts)
d.
(Gross profit / interest on total debts)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!