The estimated PAT of PQR Limited for the next year is Rs.870 million after charging Rs.180 million towards depreciation and Rs.240 million towards tax. The interest obligation is expected to be Rs.240 million and loan installment payable is Rs.320 million. The tax rate applicable to the company is 30%. The Debt Service Coverage Ratio of the company is:

a. 1.55 Times

b. 2.73 Times

c. 2.19 Times

d. 6.375 Times

e. Cannot be ascertained

SOLUTION WITH EXPLANATION