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7. Consider the following investment grade company: EBITDA 500 Debt 1,000 Rent 50 A. Calculate EBITDA/interest, fixed charge coverage and Debt/EBITDA B. Discuss why fixed

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7. Consider the following investment grade company: EBITDA 500 Debt 1,000 Rent 50 A. Calculate EBITDA/interest, fixed charge coverage and Debt/EBITDA B. Discuss why fixed charge coverage is a better ratio than EBITDA/interest when calculating a firm's ability to service its obligations

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