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Your company's recent accounts show profit before interest and tax of 3.96m. The company has borrowings of 12 million, at a fixed rate of 6%
Your company's recent accounts show profit before interest and tax of 3.96m. The company has borrowings of 12 million, at a fixed rate of 6% per annum. What is the company's interest cover ?
i) 5.5 times
ii) 4.5 times
iii) 3.0 times
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