Only Brakes Inc. is a start-up company that raised the following debt capital in its first year: notes payable of $10,000,000; long-term bank debt of $35,000,000; and bonds payable of $60,000,000. Assuming the company had total stockholders' equity of $85,000,000 at the end of its first year and generated EBIT of $42,000,000 and EBITDA of $57,000,000, what is Only Brakes cash flow leverage at first year end?

Answer rating: 100% (QA)

To determine Only Brakes Incs cash flow leverage at the end of its first year we will calculat... View the full answer