A company's net income before interest & tax was OMR 400000 for its most recent year. The company's income statement showed Income Tax Expense of OMR 140000 and Interest Expense of OMR 60000. At the beginning of the year the company's shareholders' equity was OMR 1900000 and at the end of the year it was OMR 2100000. Long term loan ( Debt) was OMR 800000. Calculate Interest coverage ratio. Select one: a. 4.3 b. 3.3 c. 6.6 d. 48.3
A company's net income before interest & tax was OMR 400000 for its most recent year. The company's income statement showed Income Tax Expense of OMR 140000 and Interest Expense of OMR 60000. At the beginning of the year the company's shareholders' equity was OMR 1900000 and at the end of the year it was OMR 2100000. Long term loan ( Debt) was OMR 800000. Calculate Interest coverage ratio. Select one: a. 4.3 b. 3.3 c. 6.6 d. 48.3
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A company's net income before interest & tax was OMR 400000 for its most recent year. The company's income statement showed Income Tax Expense of OMR 140000 and Interest Expense of OMR 60000. At the beginning of the year the company's shareholders' equity was OMR 1900000 and at the end of the year it was OMR 2100000. Long term loan ( Debt) was OMR 800000.
Calculate Interest coverage ratio.
Select one:
a. 4.3
b. 3.3
c. 6.6
d. 48.3
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