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2- Boehm-Gau Real Estate Speculators, Inc., has the following EBIT and debt- servicing burden: BOEHM-GAU Expected EBIT $6500000 Annual interest 1598300 Annual principle payments on

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2- Boehm-Gau Real Estate Speculators, Inc., has the following EBIT and debt- servicing burden: BOEHM-GAU Expected EBIT $6500000 Annual interest 1598300 Annual principle payments on debt 3500000 The tax rate for Boehm-Gau is 60 percent. Compute the interest coverage and the debt-service coverage ratios for the company. 3- Gahlon Gearing, Ltd., has a DOL of 17 at its current production and sales level of 11230 units. At the company's new sales position of 12990 units, what is the firm's "new" DOL

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