Question
IOU Inc. has EBIT of $58,000, depreciation and amortization of $12,000, interest expenses of $21,000, principal repayments of $17,000, and a tax rate of 35%.
IOU Inc. has EBIT of $58,000, depreciation and amortization of $12,000, interest expenses of $21,000, principal repayments of $17,000, and a tax rate of 35%. Calculate IOU Inc.s interest coverage ratio and debt service coverage ratio.
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Financial Accounting
Authors: Jr. Belverd E. Needles, Marian Powers
9th Edition
0547070020, 978-0547070025
