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Minden Co has sales of $500,000, operating profit of $50,000, interest expense of $10,000, tax expense of $20,000, total equity of $125,000 and total debt
Minden Co has sales of $500,000, operating profit of $50,000, interest expense of $10,000, tax expense of $20,000, total equity of $125,000 and total debt of $275,000. The debt carries interest @ 5% per annum. The interest cover ratio is: a) 5X b) 3X, c) 2X d) 1.5X
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