Question 26

"Venus Limited has current assets of $60 million, current liabilities of $30 million, inventory of $10 million, total assets of $200 million and total shareholders? equity of $40 million. In addition, Venus Limited has earnings before interest and tax of $30 million, interest expense of $5 million and corporate tax rate of 30%. Calculate interest coverage ratio."

5.00 times

6.00 times

6.40 times

7.40 times