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1- The Crazy Horse Hotel has a capacity to stable 82 horses. The fee for stabling a horse is 525 per month. Maintenance, depreciation, and

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1- The Crazy Horse Hotel has a capacity to stable 82 horses. The fee for stabling a horse is 525 per month. Maintenance, depreciation, and other fixed operating costs total $1000 per month. Variable operating costs per horse are $15 per month for hay and bedding and $10 per month for grain. a. Determine the monthly operating break-even point in horses stabled). b. Compute the monthly operating profit if an average of 41 horses are stabled. 2- Boehm-Gau Real Estate Speculators, Inc., has the following EBIT and debt- servicing burden: BOEHM-GAU Expected EBIT $8200000 Annual interest 1600000 Annual principle payments on debt 5200000 The tax rate for Boehm-Gau is 43 percent. Compute the interest coverage and the debt-service coverage ratios for the company

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