Tesla, Inc. is calculating its debt coverage ratios for the fiscal year. The following data is

provided:

● Earnings Before Interest and Taxes (EBIT): $10,000,000

● Interest Expense: $2,000,000

● Total Debt: $50,000,000

a) Compute the Interest Coverage Ratio. b) Determine the Debt Service Coverage Ratio. c)

Analyze the implications of high debt coverage ratios for Tesla. d) Evaluate the impact of

increased interest expense on debt coverage ratios. e) Assess strategies to improve debt

coverage ratios for Tesla.