Question
1.Goodco Corporation has a debt incurrence covenant of 3x Debt/EBITDA.On 12/31/2019 the company's debt remained unchanged at $300 million, but their EBITDA declined to $90
1.Goodco Corporation has a debt incurrence covenant of 3x Debt/EBITDA.On 12/31/2019 the company's debt remained unchanged at $300 million, but their EBITDA declined to $90 million.
a.Would they be in violation of this covenant?
b.If not, would they be able to borrow any more money?
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Fundamentals Of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
13th Edition
978-0134083308, 013408330X
