IOU Inc. has EBIT of $58,000, depreciation and amortization of $12,000, interest expenses of $21,000, principal repayments

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IOU Inc. has EBIT of $58,000, depreciation and amortization of $12,000, interest expenses of $21,000, principal repayments of $17,000, and a tax rate of 35 percent. Calculate IOU Inc.'s interest coverage ratio and debt service coverage ratio.

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Financial Management Concepts and Applications

ISBN: 978-0132936644

1st edition

Authors: Stephen Foerster

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Question Posted: May 24, 2017 09:09 AM

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IOU Inc. has EBIT of $58,000, depreciation and amortization of $12,000, interest expenses of $21,000, principal repayments

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EBIT 58000 Depreciation and amortization 12000 EBITDA 70000 Interest expenses i...View the full answer

Financial Management Concepts and Applications

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