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3. Consider the following information for the Trident Corporation (in millions) Gross profit 6,100 Royalty and commission income 120 Other operating income 115 Other operating
3. Consider the following information for the Trident Corporation | (in millions) | |||||||
Gross profit | 6,100 | |||||||
Royalty and commission income | 120 | |||||||
Other operating income | 115 | |||||||
Other operating expenses | 5,550 | |||||||
Operating profit | 785 | |||||||
Interst Income | 30 | |||||||
Interest Expense | 118 | |||||||
Income before taxes | 697 | |||||||
Income Taxes | 161 | |||||||
Net Income | 536 | |||||||
Additional information | ||||||||
Depreciation and amortization was $256 million | ||||||||
Total Assets: $11,618 million | ||||||||
Total Debt: $1,840 million | ||||||||
Shareholders' equity $ 5,120 million | ||||||||
a. What is the EBITDA interest coverage ratio for Trident Corp? | ||||||||
b. What is the debt/capital ratio for Trident Corp? | ||||||||
c. Which of the 4 C's of credit is addressed by the EBITDA interest coverage ratio? Why? |
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