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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
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?
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