Question
Microsoft Corporation is assessing its compliance with debt covenants for the year ending December 31, 20X9. The following data is provided: Total Liabilities: $120,000,000
Microsoft Corporation is assessing its compliance with debt covenants for the year ending
December 31, 20X9. The following data is provided:
● Total Liabilities: $120,000,000
● Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): $50,000,000
● Interest Expense: $10,000,000
● Debt Service Coverage Ratio Requirement: [Calculation 7]
Calculate the following:
a) Debt Service Coverage Ratio b) Microsoft's Compliance Status c) Times Interest Earned
Ratio d) Operating Cash Flow
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Financial Statement Analysis and Security Valuation
Authors: Stephen Penman
5th edition
78025311, 978-0078025310
