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Make an examination of the coverage ratios for Basket Wonders when EBIT=$500,000. Compare the equity and the debt financing alternatives. Assume that: Interest expenses remain

Make an examination of the coverage ratios for Basket Wonders when EBIT=$500,000. Compare the equity and the debt financing alternatives.

Assume that:

Interest expenses remain at $100,000

Principal payments of $100,000 are made yearly for 10 years

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