EXAMPREP 2026 COMPLETE QUESTION
SET AND SOLUTIONS
⩥ Interest bearing debt to equity ratio(ratio). Answer: Total interest-
bearing debt(short and long term)/total shareholder's equity(including
reserves)
⩥ Net interest bearing debt to equity ratio. Answer: = (Toal interest-
bearing debt(short and long-term) - cash and cash equivalents)/Total
shareholder's equity(including reserves)
⩥ Comparison of capital structure of the entity to the target structure.
Answer: Compare the actual composition to the target structure
⩥ Net interest-bearing debt to EBITDA (Ratio). Answer: (Total interest-
bearing debt(short and long term) - cash and cash equivalents)/EBITDA
⩥ Total debt ratio(%). Answer: total debt/total assets
⩥ Interest cover (ratio) or times interest earned. Answer: EBIT/Total
finance cost