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Interest Coverage Ratio Calculation: Requirements: Calculate the interest coverage ratio using the following information: Earnings Before Interest and Taxes (EBIT): $120,000 Interest Expense: $20,000

Interest Coverage Ratio Calculation:

  • Requirements: Calculate the interest coverage ratio using the following information:
    • Earnings Before Interest and Taxes (EBIT): $120,000
    • Interest Expense: $20,000

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