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A company with EBIT of $8,500 and interest expense of $1,500 wants to maintain a fixed charge coverage ratio of at least 2.4 times. What

A company with EBIT of $8,500 and interest expense of $1,500 wants to maintain a fixed charge coverage ratio of at least 2.4 times. What is the maximum level of lease payments this company can have and still meet this limit?

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$1,750

$1,250

$5,000

$3,500

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