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Dietrick Corp., has $100 million of earnings before interest and taxes and $30 million of interest expense. Calculate the pro forma interest coverage ratio assuming

Dietrick Corp., has $100 million of earnings before interest and taxes and $30 million of interest expense. Calculate the pro forma interest coverage ratio assuming the issuance of $50 million of 8% debt with the proceeds to be invested temporarily in commercial paper that yields 4%. Please click on the following link to access a blank Excel-type worksheet: Blank XLS Worksheet.xls Click to open: 0 2.5 O 3.0 O 3.5 0 4.0

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