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GH is a listed entity which holds equity shares in one subsidiary and one associate.
Information extracted from the most recent financial statements is as follows:
What is the interest cover for the year?
Suggested Answer: A, B, C, D
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41 comments · newest first
AN
Andrew
11 months ago
Interest cover is calculated as EBIT divided by interest expense.
IZ
Izetta
11 months ago
Wait, how did they get 11.7 times? That seems off.
RO
Roxane
11 months ago
I think C is too high, not sure about that one.
AL
Alecia
12 months ago
I'm going with B, seems reasonable!
VI
Viva
12 months ago
Interest cover is a key metric for assessing financial health.
CO
Corrina
1 year ago
I feel like the answer is around 10 times, but I can't remember if it was closer to 10.7 or 11.7. I need to double-check my calculations!
GR
Gracie
1 year ago
I'm a bit unsure about how to interpret the financial statements. Did we need to adjust for any non-recurring items before calculating?
EL
Elliott
1 year ago
I think I practiced a similar question last week, and I got a different answer. I hope I remember the right figures this time!
AN
Antonio
1 year ago
I remember we calculated interest cover in class, but I can't quite recall the exact formula. Was it EBIT divided by interest expense?
ET
Ethan
1 year ago
I think I know how to do this. I'll start by finding the operating profit and interest expense from the financial statements, then calculate the interest cover.
VI
Viola
1 year ago
Hmm, I'm a bit unsure about how to approach this. Do I need to use any specific formulas or ratios?
TE
Terina
1 year ago
Okay, this seems straightforward. I just need to calculate the interest cover ratio using the information provided.
LA
Lavina
1 year ago
This looks like a standard financial analysis question. I'm confident I can work through the steps to find the correct answer.
GE
Gerald
1 year ago
I'm not too sure about this one. I'll have to think it through carefully.
KA
Karl
1 year ago
Okay, let's see. BPDU guard sounds like it could be the right answer, since it's specifically meant to protect the spanning tree from unauthorized devices. But I want to double-check the other options just to be sure.
HO
Hollis
1 year ago
Tricky question. I'll read carefully and remember: they want the most accurate technical definition that matches the description.
BO
Bo
1 year ago
Interest cover? That's easy, I got this! I'm going to go with option B, it just seems like the most logical choice. Hey, did you hear about the accountant who got hit by a car? He had a balance sheet.
CH
Charlie
1 year ago
Haha, that accountant joke is funny!
AN
Anjelica
1 year ago
I agree, option B seems like the best choice.
KI
Kimberlie
1 year ago
I think the interest cover is 10.7 times.
AN
Antonio
1 year ago
Ah, this is a tricky one. I need to make sure I have the formula right. Maybe I should use a calculator to double-check my work. Better safe than sorry, you know?
HA
Haydee
1 year ago
I got 9.6 times as the interest cover for the year.
LA
Lashawnda
1 year ago
I calculated it as 11.7 times.
CO
Cordelia
1 year ago
I think the interest cover for the year is 10.7 times.
NI
Nida
2 years ago
Wait, isn't the interest cover just the operating profit divided by the interest expense? I think I'm going to go with option C, that seems like the most reasonable answer based on the information provided.
BR
Brittni
1 year ago
Great, option C it is then. Thanks for clarifying how to calculate interest cover.
BR
Brittni
1 year ago
I agree, let's go with option C for the interest cover for the year.
LA
Latrice
1 year ago
Option C does seem like the most reasonable answer based on the information provided.
JE
Jerlene
1 year ago
I think you're right, interest cover is calculated by dividing operating profit by interest expense.
KR
Kristel
2 years ago
Hmm, let me think about this. I'm pretty sure the interest cover is calculated by dividing the operating profit by the interest expense. This should give us a good indication of the company's ability to cover its interest payments.
SA
Samuel
1 year ago
I don't think it's that low.
IS
Isaac
1 year ago
D) 8.5 times
NA
Nana
1 year ago
I believe it's closer to that number.
MA
Marylin
1 year ago
C) 11.7 times
TW
Twanna
1 year ago
That sounds more reasonable.
SH
Sherman
1 year ago
B) 10.7 times
GE
Gertude
1 year ago
I think it might be higher than that.
AR
Arlean
2 years ago
A) 9.6 times
NY
Nydia
2 years ago
I'm going with 11.7 times because the higher the better for interest cover.
KA
Kattie
2 years ago
I believe it is 9.6 times.
HO
Hollis
2 years ago
I think the interest cover is 10.7 times.