Incorrect Question 2 0/1.2 pts Pettijohn Inc. The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. However, it has lease payment $200 million. 2016 Balance Sheet (Millions of $) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets $ 1,554.0 9,660.0 13,440.0 $24,654.0 17.346.0 $42,000.0 $ 7,980.0 Liabilities and Equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity 5,880.0 4,620.0 $18,480.0 10.920.0 $29,400.0 3,360.0 9,240.0 $12,600.0 $42.000.0 2016 Income Statement (Millions of $) Net sales Operating costs except depr'n Depreciation Earnings before int and taxes (EBIT) Interest Earnings before taxes (EBT) Taxes Net income $58,800.0 $54,978.0 $ 1.029.0 $ 2,793.0 1.050.0 $ 1,743.0 $ 610.1 $_1.133.0 175.00 $ 509.83 Other data: Shares outstanding (millions) Common dividends Int rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 6.25% 35% $77.69 Refer to the data for Pettijohn Inc. What is the firm's EBITDA coverage? 3.22 4.55 2.66 3.64 2.39