Question : Net Profit after tax Rs.6,00,000

Rs.40,00,000, 12% Debentures of Rs. 100 each.

The tax Rate of 40% interest coverage ratio of the company will be _______.

Option 1: 3.07 times 

Option 2: 3 times 

Option 3: 3.80 times 

Option 4: 3.08 times

Question : Net Profit after tax Rs.6,00,000

Rs.40,00,000, 12% Debentures of Rs. 100 each.

The tax Rate of 40% interest coverage ratio of the company will be _______.

Option 1: 3.07 times 

Option 2: 3 times 

Option 3: 3.80 times 

Option 4: 3.08 times

Question : The Interest coverage ratio will ------------ if the company decides to redeem Debentures assuming the same rate of Net Profit and the tax rate will be the same.

Option 1: Improve 

Option 2: Decline 

Option 3: No changes 

Option 4: Increase net profit ratio

Question : The Interest coverage ratio will ------------ if the company decides to redeem Debentures assuming the same rate of Net Profit and the tax rate will be the same.

Option 1: Improve 

Option 2: Decline 

Option 3: No changes 

Option 4: Increase net profit ratio

Question : From the following information calculate interest coverage ratio:
Net Profit after tax Rs. 1,20,000; 15% Long-term debt 12,00,000; and Tax rate 40%.

Option 1: 3 times

Option 2: 2 times

Option 3: 1.67 times

Option 4: 1.50 times

Question : Which of the following statements is true?

Option 1: Net Profit after tax means Net Profit after interest and tax

Option 2: Net Profit after tax means Net Profit after interest and  before tax

Option 3: Net Profit after tax means Net Profit  before interest and  after tax

Option 4: Net Profit after tax means Net Profit before  interest and  before tax