标题: Interest coverage ratio not affected by the investment in as [打印本页] 作者: maratikus 时间: 2013-4-5 22:45 标题: Interest coverage ratio not affected by the investment in as
Hi Guys.
I am a bit confused with CFA book Reading 28 EOC question 8 (page 468).
Is interest coverage ratio really not affected by the investment in associates?
I decreased Colorfull Concept EBIT with 21 (20% share in Exotic Imports NI = 105*0.20).
Can you let me know why is CFA not adjusting Colorfull’s EBITwhen exluding the investment in associates?
Thanks in advance.作者: KungFuPanda 时间: 2013-4-5 22:46
Equity method income is non-operating and therefore not included in EBIT.
