If the interest coverage ratio (based on EBIT) is If the interest coverage ratio (based on EBIT) is

Miscellaneous data for Firm A (as of 12/31/2021, which is both the valuation date and the end of the historical period) Firm credit rating Total book value of assets ($ millions) Net income (in $ millions) Number of share outstanding as of valuation date (in millions) COGS (in $ millions) Revenue (in $ millions) Current portion of long-term debt (in $ millions) Stock beta Long-term debt reported in long-term liabilities (in $ millions) Taxes (in $ millions) Share price SG&A and other indirect costs (in $ millions) Total book value of equity ($ millions) Short-term debt (in $ millions) Other miscellaneous data Risk-free rate Relevant tax rate for firm Market risk premium Equity weight used to compute WACC for firm (no rounding) Debt weight used to compute WACC for firm (no rounding) Expected return of firm's equity (rounded to the hundredth of a percent) Expected return of firm's debt (rounded to the hundredth of a percent) WACC for firm (rounded to the hundredth of a percent) If the interest coverage ratio (based on EBIT) is Amount 98,535.7 2,367.1 746.8 25,454.6 30,208.2 9,863.3 0.82 21,549.4 979.7 $100.82 6,432.4 2,279.0 317.5 Am ount 4.61% 11.34% 16.92% Greater than 8.50 7.50 5.90 4.50 3.70 3.00 2.40 1.80 1.60 1.40 1.20 0.90 0.60 0.30 negative infinity And equal to or less than Then rating is And spread is infinity 8.50 7.50 5.90 4.50 3.70 3.00 2.40 1.80 1.60 1.40 1.20 0.90 0.60 0.30 A1/A+ A2/A A3/A- Baa2/BBB Bal/BB+ Ba2/BB BI/B+ B2/B B3/B- Caa/CCC Ca2/CC C2/C D2/D 0.61% 1.58% 2.45% 3.04% 3.93% 4.94% 5.38% 6.41% 7.37% 7.82% 8.81% 9.72% 10.58% 12.86% 16.92%