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Can this Company A can repay the loan, and is the loan within its debt capacity with following data provided?Thanks. Dept capacity calcuation Bust Boom
Can this "Company A" can repay the loan, and is the loan within its debt capacity with following data provided?Thanks.
Dept capacity calcuation | Bust | Boom | Indiffrence |
EBIT | 10,000 | 20,000 | 0.0 |
Interest coverage ratio per rating | 3.4 | 3.4 | 0.0 |
Interest rate | 7.6% | 7.6% | 0.0 |
Avaiable for interest | 2,941 | 5,882 | --- |
Debt Capacity | 38,811 | 77,622 | --- |
Existing Debt | 100,475 | 100,475 | 0.0 |
Excess Debt Capacity: | -61,664 | -22,853 | --- |
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