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Use the information below to answer questions 26-27. Yr.1 Yr.4 Revenues 2000 2300 EBITDA 800 900 Debt 1650 1400 Rent 200 200 26. Calculate
Use the information below to answer questions 26-27. Yr.1 Yr.4 Revenues 2000 2300 EBITDA 800 900 Debt 1650 1400 Rent 200 200 26. Calculate interest coverage, fixed charge coverage and Debt/EBITDA in year 4. 27. Assume the company was purchased for a 7x multiple at the end of year 1, financed with 1650 of debt. If the company were sold at the end of year 4 for the same multiple, what would the equity return be?
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