Question
Lever Age pays an 9% rate of interest on $9.10 million of outstanding debt with face value $9.1 million. The firm's EBIT was $2.9 million.
Lever Age pays an 9% rate of interest on $9.10 million of outstanding debt with face value $9.1 million. The firm's EBIT was $2.9 million.
a.What is its times interest earned?(Round your answer to 2 decimal places.)
Times Interest earned?
b.If depreciation is $110,000, what is its cash coverage ratio?(Round your answer to 2 decimal places.)
Cash coverage ratio?
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
8th edition
77861620, 978-0077861629
