The numerator while calculating Interest coverage ratio is ___

Net Profit before Interest ,Tax & Depreciation

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Net Profit after Interest and Tax

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Net Profit before Interest and Tax

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None of these

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Solution

The correct option is C
Net Profit before Interest and Tax

The numerator while calculating Interest coverage ratio is net profit before interest and tax.

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Similar questions

From the following details, calculate interest coverage ratio: Net Profit after tax Rs. 60,000; 15% Long-term debt 10,00,000; and Tax rate 40%.

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