Question
Suppose a firm has EBIT of $4.95 million, interest expenses of $2.4 million, depreciation expenses of $1.3 million, and has a tax rate of 35%.
Suppose a firm has EBIT of $4.95 million, interest expenses of $2.4 million, depreciation expenses of $1.3 million, and has a tax rate of 35%. Its bank agrees to lend up to 4.2 times its EBITDA. How much debt can the firm borrow from the bank?
The maximum amount they can borrow is $? million
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Real Estate Finance And Investments
Authors: William Brueggeman, Jeffrey Fisher
13th Edition
0073524719, 9780073524719
