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Net income before tax of a company is $75,000. This company has interest bearing securities of $50,000 with weighted average interest rate of 8%. The
Net income before tax of a company is $75,000. This company has interest bearing securities of $50,000 with weighted average interest rate of 8%. The company has $350,000 of ordinary shares, $350,000 of preference shares and $30,000 of reserves. The interest coverage ratio for this company is close to: Select one: A. 12.5 B. 18.75 C. 20 D. 9.37
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