Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:

Match List I with List II

List I

Formula

List II

Ratio

A. $\frac{\text{Earning before Interest and Tax}}{\text{Interest}}$ I. Earning per Share
B. $\frac{\text{Profit after tax and interest}}{\text{Number of Equity Shares}}$ II. Return on Investment Ratio
C. $\frac{\text{Profit after tax+Depreciation+Interest-Non cash Expenses}}{\text{Preference Dividend + Interest + Repayment obligation}}$ III. Interest Coverage Ratio
D. $\frac{\text{Net Profit Before Interest and Tax}}{\text{Capital Employed}}$ IV. Debt Services Coverage Ratio

Choose the correct answer from the option sgiven below :

Options:

A-I, B-II, C-III, D-IV

A-III, B-II, C-IV, D-I

A-III, B-I, C-IV, D-II

A-IV, B-III, C-II, D-I

Correct Answer:

A-III, B-I, C-IV, D-II

Explanation:

The correct answer is option (3) : A-III, B-I, C-IV, D-II