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Refer to Joe's Appliance Ltd (JAL) financial statements. The indenture on JAL's existing debt places a restriction that EBIT must be at least four times
Refer to Joe's Appliance Ltd (JAL) financial statements. The indenture on JAL's existing debt places a restriction that EBIT must be at least four times greater than total interest paid on the firm's debt. Using 2019 EBIT, what is theadditionalamount JAL can borrow, assuming an interest rate of 8% on new debt and without JAL going below a Times Interest Earned ratio of four?
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