Question
Your sales are $10,000,000. Your gross margin is 10%. Your fixed costs are $2,000,000, of which 10% is Depreciation. Your tax rate is 30%. You
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Your sales are $10,000,000. Your gross margin is 10%. Your fixed costs are $2,000,000, of which 10% is Depreciation. Your tax rate is 30%. You have a $1mm loan at an interest rate of 5%.
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What is your Interest Coverage Ratio?
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The loan has monthly amortization over 5 years. What is your Fixed Payments Coverage Ratio?
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Accounting And Finance For Bankers
Authors: IIBF
3rd Edition
9350598485, 9789350598481
