Mia Co made an operating profit of $2m last year and had an interest cover ratio of four times
It is considering a new project which will increase operating profit by 30% and will require additional dett finance of som, to be raised, on which Mis Co will be charg interest
Assuming the finance is raised and the project goes ahead, what will be the new interest cover ratio ( to two decimal places) ?

Question

17-06-2024
Business

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Mia Co made an operating profit of $2m last year and had an interest cover ratio of four times
It is considering a new project which will increase operating profit by 30% and will require additional dett finance of som, to be raised, on which Mis Co will be charg interest
Assuming the finance is raised and the project goes ahead, what will be the new interest cover ratio ( to two decimal places) ?

Sagot :

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