QUESTION 24

Driver Enterprises reports 2015 earnings before interest and taxes (EBIT) of $474,440 and interest expense of $24,345. Included in its reported operating expenses for 2015 were operating lease expenses of $101,332. Based on footnote data and a discount rate of 10% you have determined the present value of the future operating lease obligations to be $437,493. Calculate the fixed charge coverage ratio after incorporating the impact of the operating leases. Present your answer rounded to two decimal places, e.g., 20.00.