How to advice a client on raising Debt?
1 Answer(s)
Binny
Roshan since this is a quiz question, I cant explain the solution. I will try to better explain the question.
D/E Ratio - 5x
If Interest Coverage - 1.3x and Interest expense is 10 crore then you can find Operating Income by this formula Interest Coverage = EBIT / Interest expense
Then you can figure out how much is new operating income if it decreases by 10%
Jan 22 2013 09:48 AM
D/E Ratio - 5x
If Interest Coverage - 1.3x and Interest expense is 10 crore then you can find Operating Income by this formula Interest Coverage = EBIT / Interest expense
Then you can figure out how much is new operating income if it decreases by 10%