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Evaluate the financial risk of Company QQ using the interest coverage ratio, given its EBIT of $400,000 and interest expenses of $100,000. Compute the company's

  • Evaluate the financial risk of Company QQ using the interest coverage ratio, given its EBIT of $400,000 and interest expenses of $100,000. Compute the company's interest coverage ratio and interpret its implications for the company's ability to service its debt obligations.

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