Compute the company dividend cover ratio

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Question - Alberta Inc. has sales of $1,000,000, operating profit of $50,000, interest expense of $12,500, tax expense of $7,500, total equity of $200,000, and total debt of $300,000. The company paid a dividend of $10059 to the common shareholders. There are 1,000 shares in issue. Compute the company dividend cover ratio?

Reference no: EM133112822

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