from the following information calculate interest coverage ratio net p

1.	from the following information calculate interest coverage ratio net profit after tax 700000 6%debentures 20,00,000 tax rate of 30%
Answer» Solution Net Profit Before Tax – Tax paid = Net Profit After Tax X – 30/100 (x) = ₹7,00,000 x = ₹ 7,00,000 (100/70) x = ₹ 10,00,000 Net Profit Before Tax = ₹ 10,00,000 INTEREST Payment = 6/100 (₹ 20,00,000) = ₹ 1,20,000 Earning Before Interest and Tax = Net Profit Before Tax + Interest Payment = ₹ 10,00,000 + ₹ 1,20,000 = ₹11,20,000 Interest COVERAGE ration Interest Coverage RATIO Interest Coverage Ratio =9.33 times. PLEASE MARK ME THE BRAINLIEST ANSWER AND FOLLOW MY ACCOUNT TOO.....

from the following information calculate interest coverage ratio net profit after tax 700000 6%debentures 20,00,000 tax rate of 30%

Answer»

Solution

Net Profit Before Tax – Tax paid = Net Profit After Tax
X – 30/100 (x) = ₹7,00,000
x = ₹ 7,00,000 (100/70)
x = ₹ 10,00,000
Net Profit Before Tax = ₹ 10,00,000
INTEREST Payment = 6/100 (₹ 20,00,000) = ₹ 1,20,000
Earning Before Interest and Tax = Net Profit Before Tax + Interest Payment
= ₹ 10,00,000 + ₹ 1,20,000
= ₹11,20,000
Interest COVERAGE ration

Interest Coverage RATIO

Interest Coverage Ratio =9.33 times.

PLEASE MARK ME THE BRAINLIEST ANSWER AND FOLLOW MY ACCOUNT TOO.....

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