[shayanacca]

I got debt/equity around 40%.
Interest cover of the conpany was 6 times.
So, 6= PBIT/ 0.84+ 0.60
PBIT would be 8.64
But after new investment, PBIT would increase by 20% which means 10.368 (8.64*120%)
Hence it would decrease interest cover ratio which was already below average sector.
Revised interest cover= 10.368/ 0.84+ 0.60 + 0.80
4.63 times.
The interest cover falls from 6 to 4.63 times

[shayanacca]

Early settlement was beneficial.
Cost = 108000+ 35000 (admin cost)
Benefit = 648000 + 8000 (decrease in bad debt)

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