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A firm is considering adding to its debt by borrowing $2 million at an annual interest rate of 8%. Assume that before considering this capital

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A firm is considering adding to its debt by borrowing $2 million at an annual interest rate of 8%. Assume that before considering this capital restructuring the firm has total debt of $6 million at an annual interest rate of 5% and annual depreciation expense of $500,000. Assuming EBIT of $900,000, what is this company's cash coverage ratio (6) before, and (b) after the proposed restructuring? OA 3.04 4.67 OB. 4.67 3.04 OC 3.00, 196 OD. 196,300

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