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P16.3 The InvestCo Company has 570,000 shares of $3.83 trust preferred stock outstanding. The firm generates an EBIT of $37 million and has annual interest
P16.3 The InvestCo Company has 570,000 shares of $3.83 trust preferred stock outstanding. The firm generates an EBIT of $37 million and has annual interest payments of $3.48 million. Given this information, determine the fixed charge coverage on these trust preferred stocks. Assume a corporate tax rate of 21%. The fixed charge coverage on these trust preferred stocks is . (Round to two decimal places.)
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