Question
Lever Age pays an 8% rate of interest on $9.20 million of outstanding debt with face value $9.2 million. The firm's EBIT was $2.8 million.
Lever Age pays an 8% rate of interest on $9.20 million of outstanding debt with face value $9.2 million. The firm's EBIT was $2.8 million.
a.What is its times interest earned?(Round your answer to 2 decimal places.)
b. If depreciation is $120,000, what is its cash coverage ratio?(Round your answer to 2 decimal places.)
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Study Guide To Accompany Fundamentals Of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
5th Edition
0073012424, 9780073012421
