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ABC Corp. has $15 million outstanding debt (with a face value of $15 million) on its balance sheet. The debt carries a 7.5% interest. ABC's

ABC Corp. has $15 million outstanding debt (with a face value of $15 million) on its balance sheet. The debt carries a 7.5% interest.

ABC's EBIT was $2 million.

a) What is ABC's "times interest earned" ratio?

b) If depreciation expense is $350,000, what is the company's cash coverage ratio? Round your numbers to two decimals.

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