A manufacturing company which is presently growing at a good rate has a Financial Leverage of 3. Its present borrowings are as follows: 12% Term…

CA Intermediate · Financial Management and Strategic Management · RTP · September 2025
A manufacturing company which is presently growing at a good rate has a Financial Leverage of 3. Its present borrowings are as follows: 12% Term Loan 60,00,000 Bank borrowings@10% 40,00,000 Public Deposits@8% 20,00,000 The Interest Coverage Ratio will be
(A) 1. 0
(B) 1. 5
(C) 2. 0
(D) 2. 5

Suggested Answer and Working Notes:

Correct Answer: Option (B)

1. 5

Topics: Part-A: Financial Management

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