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RRRs income statement for 2019 and its balance sheets for 2019 and 2018 are shown below. Please use them to answer questions (7) through (9).

RRRs income statement for 2019 and its balance sheets for 2019 and 2018 are shown below. Please use them to answer questions (7) through (9). Assume that RRRs financial obligations are non-current i.e., they do not come due within the next year. When answering questions (7) through (9), please round your answers to the first decimal place. Also, when calculating ratios that are a function of balance sheet amounts, do not use average balances. Rather, use the ending balances only.

2019
Revenue 110
Cost of sales 60
Other operating expenses 30
Operating income 20
Financial expense 3
Tax expense 3
Net income 14

2019 2018 2019 2018
Cash 15 10 Accounts payable 27 22
Inventory 30 20 Financial obligations 30 30
Receivables 12 8
Fixed assets 50 60 Equity 55 51
Goodwill 5 5
Total assets 112 103 Liabilities & equity 112 103

Suppose that depreciation and amortization expense of 5 is included in other operating expenses, what was RRRs EBITDA to net interest.

4.7

6.7

8.3

None of the above.

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