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subject - finance 1 A firm with EBIT of $10.0 million and existing debt of $30.0 million would like to increase its debt further by

subject - finance 1 image text in transcribed
A firm with EBIT of $10.0 million and existing debt of $30.0 million would like to increase its debt further by bond covenants restrict the EBIT/interest expense covenant to 5 times? Question 1: Can the new debt be ra carries a cost of 6%. The tax rate of the company is 40%. Question 2: What is the maximum debt that can be DI A firm with EBIT of $10.0 million and existing debt of $30.0 million would like to increase its debt further by bond covenants restrict the EBIT/interest expense covenant to 5 times? Question 1: Can the new debt be ra carries a cost of 6%. The tax rate of the company is 40%. Question 2: What is the maximum debt that can be DI

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