Here are some data for five companies in the same industry: You have been asked to calculate

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Here are some data for five companies in the same industry:

You have been asked to calculate a measure of times-interest-earned for the industry. Discuss the possible ways that you might calculate such a measure. Does changing the method of calculation make a significant difference to the end result?

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Principles of Corporate Finance

ISBN: 978-0078034763

11th edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen

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Question Posted: Nov 21, 2016 08:45 AM

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Here are some data for five companies in the same industry: You have been asked to calculate

Question:

Company Code 18 30 15 100 80 10 EBIT 50 Interest expense

Step by Step Answer:

Two obvious choices are a Total industry EBIT over total i...View the full answer

Principles of Corporate Finance

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