The interest coverage ratio decreases to 4.54.
Under the interest rate of 15%, the debt ratio increases to 0.512 and the interest cover decreases to 2.98.
In both the cases the debt ratio is below 60% as desired by the bankers. Though in the scenario of 15% interest rate, the interest cover ratio falls quite a bit, but is still close to 3... Showed first 250 characters
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Though in the scenario of 15% interest rate, the interest cover ratio falls quite a bit, but is still close to 3.0.
2. 40% debt ratio ? In this scenario, the equity is increased so as to maintain a constant debt ratio of 40%. Under the 10% interest rate, the debt ratio is 0... Showed next 250 characters
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