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Q. Describe about Interest cover?
Interest cover = (Profit before interest and tax (PBIT)/ Interest payable) (no. of times)
Interest cover shows the safety of earnings, that shareholders look at. Interest cover looks at the proportion of profits that must be allocated to meeting interest charges. Interest payable is on long term finance.
Q. What is Transfer Pricing? A transfer price is a price charged for goods or services provided internally between divisions or departments in the same group or company. Tran
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