Tesla, Inc. is assessing its compliance with debt covenants for the year. The following data is

provided:

● Total Liabilities: $50,000,000

● Long-term Debt: $30,000,000

● Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): $15,000,000

● Interest Expense: $5,000,000

● Debt Service Coverage Ratio Requirement: 2.0

a) Compute the Debt Service Coverage Ratio. b) Determine Tesla's Compliance Status. c)

Calculate the Interest Coverage Ratio. d) Analyze the Impact on Debt Financing. e) Evaluate

Potential Remediation Strategies.