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Calculate the interest coverage ratio for Company F, with earnings before interest and taxes (EBIT) of $400,000 and interest expenses amounting to $100,000. Analyze the

  • Calculate the interest coverage ratio for Company F, with earnings before interest and taxes (EBIT) of $400,000 and interest expenses amounting to $100,000. Analyze the implications of a high interest coverage ratio for a company's ability to meet its debt obligations and the associated risks for creditors and investors.
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