Explain the term- interest coverinterest cover profit, Ask an Expert

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Explain the term- Interest cover

Interest cover =Profit before interest and tax (PBIT)/ Interest payable(no. of times)

Interest cover represents the safety of earnings that shareholders look at. Interest cover looks at the proportion of profits that should be allocated to meeting interest charges. Interest payable is on long term finance.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M9580537

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