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thanks! A firm is considering adding to its debt by borrowing $2 million at an annual interest rate of 8%. Assume that before considering this

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A firm is considering adding to its debt by borrowing $2 million at an annual interest rate of 8%. Assume that before considering this capital restructuring, the firm has total debt of $6 million at an annual interest rate of 5% and annual depreciation expense of $500,000 Assuming EBIT of $900,000 what is this company's cash coverage ratio (a) before, and (b) after the proposed restructuring? A. 4.67 3.04 B. 3.00 1.96 C. 1.96, 3.00 D. 3.04 4.67

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