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A company has earnings before interest and taxes of $2150215. They have annual interest charges on the long- term debt of $479085. Based on their
A company has earnings before interest and taxes of $2150215. They have annual interest charges on the long- term debt of $479085. Based on their interest coverage ratio, what will be the pretax cost of new long-term debt for them? Government bonds are currently yielding 2.1%. (One decimal place.} If interest coverage ratio is 3 4.25 5.5 6.5 8.50 sto 4.249999 5.499999 6.499999 8.499999 100000 Rating is A3/A A2/A A1/A+ Aa2/AA Aaa/AAA Spread is 1.33% 1.18% 1.07% 0.85% 0.69%
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