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Use the information below to answer questions 26-27. Yr.1Yr.4 Revenues20002300 EBITDA800900 Debt16501400 Rent200200 26.Calculate interest coverage, fixed charge coverage and Debt/EBITDA in year 4. 27.Assume

Use the information below to answer questions 26-27.

Yr.1Yr.4

Revenues20002300

EBITDA800900

Debt16501400

Rent200200

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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