Question
Lever Age pays an 10% rate of interest on $10.50 million of outstanding debt with face value $10.5 million. The firms EBIT was $1.5 million.
Lever Age pays an 10% rate of interest on $10.50 million of outstanding debt with face value $10.5 million. The firms EBIT was $1.5 million. What is its times interest earned? Note: Round your answer to 2 decimal places. If depreciation is $250,000, what is its cash coverage ratio? Note: Round your answer to 2 decimal places. a. Times interest earned b. Cash coverage ratio
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
