A company makes a profit of 5,000 before tax and after all interest totalling 1,200...
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Accounting
A company makes a profit of 5,000 before tax and after all interest totalling 1,200 has been charged. The capital of the company is made up of 35,000 ordinary shares, 35,000 preference shares, 25,000 debentures and 30,000 reserves. The interest cover for the company is:
5.17%
4.17%
4.17 times
5.17 times
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