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Find the interest coverage ratio

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Question - Treb Ltd has liabilities of $300,000 and shareholders' equity of $950,000. For the year ended 30 June 2020, it had $150,000 of net profit before tax, after deducting $12,000 in interest expense. Find the interest coverage ratio?

a. 25 times

b. 13.5 times

c. 12.5 times

d. 11.5 times

e. None of the above

Reference no: EM132618711

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