Discussion
Interest cover is computed as
Answer: C
Correct answer: operating profit divided by interest charge
Interest cover asks how many times over the profit would pay the interest, so a cover of six means profit could fall by more than four fifths before the interest became unaffordable. It is the flow counterpart of the debt to equity ratio, which measures the stock of debt rather than the burden of servicing it.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development