The information with respect to a company is: EBIT = ₹35 lakhs 15% Term loan = ₹50 lakhs Working capital term loan from bank @20% = ₹30lakhs 10% Preference share capital = ₹10lakhs Public deposit accepted @ 14% = ₹15 lakhs Which one among the following is the Interest Coverage Ratio for the company?

Correct option is C

To calculate the Interest Coverage Ratio, we need to divide the Earnings Before Interest and Taxes (EBIT) by the total interest expense. First, let's calculate the interest expense: Interest Expense = (Term loan * Interest rate) + (Working capital term loan * Interest rate) + (Public deposits * Interest rate) = (₹50 lakhs * 0.15) + (₹30 lakhs * 0.20) + (₹15 lakhs * 0.14) = ₹7.5 lakhs + ₹6 lakhs + ₹2.1 lakhs = ₹15.  6 lakhs Now, let's calculate the Interest Coverage Ratio: Interest Coverage Ratio = EBIT / Interest Expense = ₹35 lakhs / ₹15.6 lakhs ≈ 2.  24