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Posted on May 19, 2024

Lever Age pays an 8% rate of interest on $10.30 million of outstanding debt with face value $10.3 million. The firm's EBIT was $1.3 million.

Lever Age pays an 8% rate of interest on $10.30 million of outstanding debt with face value $10.3 million. The firm's EBIT was $1.3 million.

a. What is its times interest earned? (Round your answer to 2 decimal places.)

b. If depreciation is $230,000, what is its cash coverage ratio? (Round your answer to 2 decimal places.)

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