a. Total annual interest (in thousands): Serial bonds, 8% on $2,400 $192 Mortgage bonds, 10% on $3,000
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a. Total annual interest (in thousands):
Serial bonds, 8% on $2,400 $192 Mortgage bonds, 10% on $3,000 300 Subordinated debentures, 12% of $2,000 240
-$732 -
306 Part 111 Financing and Dividend Policies Total annual principal payments : $100 + $150 = $250 EBIT necessary to service: $250 (1 - .30) = $175.
$2 000 Times interest earned: '-- =
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