P16.2 The Granger Company has 500 000 $2 preference shares outstanding. It generates an EBIT of $40

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P16.2 The Granger Company has 500 000 $2 preference shares outstanding. It generates an EBIT of $40 million and has annual interest payments of $2 million. Given this information, determine the fixed charge coverage of the preference shares. Given the company also has

$5.5 million in depreciation and amortisation, use EBITDA to find the fixed charge coverage of preference shares.

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Fundamentals Of Investing

ISBN: 9781442532885

3rd Edition

Authors: Lawrence J. Gitman, Michael D. Joehnk, Scott Smart, Roger Juchau, Donald Ross, Sue Wright

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