Question
Lever Age pays an 10% rate of interest on $9.60 million of outstanding debt with face value $9.6 million. The firm's EBIT was $2.4 million.
Lever Age pays an 10% rate of interest on $9.60 million of outstanding debt with face value $9.6 million. The firm's EBIT was $2.4 million.
a.What is its times interest earned?(Round your answer to 2 decimal places.)
b.If depreciation is $160,000, what is its cash coverage ratio?(Round your answer to 2 decimal places.)
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Managerial Accounting
Authors: Ray Garrison, Theresa Libby, Alan Webb
10th Canadian edition
978-1259024900
