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Wilson manufacturing is considering the issuance of long term debt to finance expansion. At the present time the company has $$160 million of its 10%
Wilson manufacturing is considering the issuance of long term debt to finance expansion. At the present time the company has $$160 million of its 10% debentures outstanding. It's after tax net income is $48 million and the company's marginal tax rate is 40% the company is required by the debenture holders to maintain its coverage ratio at 4.0 or greater. Determine Wilsons present coverage ratio
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