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How does the net profit and interest cover ratio difference

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Question - ANB Constructions require extensive working capital to support a growing building business. The company requires a $745,000 line of credit to support business growth. Adelia is a specialist printer that produces colour garments for a specialist garment manufacturer. She requires a Letter of Credit - Escrow facility to buy the USA manufactured 3D printer. The landed cost of the printer is $194,500. What information will the banks need in each case? Which industry is riskier? How does the net profit and interest cover ratio difference between the two industry sectors? Why is the interest cover ratio different in these two sectors?

Reference no: EM133173528

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