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Question 20 Sundown Corp, has $120 million of earnings before interest and taxes and $40 million of interest expense. Calculate the pro forma interest coverage

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Question 20 Sundown Corp, has $120 million of earnings before interest and taxes and $40 million of interest expense. Calculate the pro forma interest coverage ratio assuming the issuance of $100 million of 10% debt with the proceeds to be invested temporarily in commercial paper that yields 8%. (Round to four decimal places)

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