Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ziebart Corp.'s EBITDA last year was $250,000 ( = EBIT + depreciation + amortization), its interest charges were $9,500, it had to repay $26,000 of

Ziebart Corp.'s EBITDA last year was $250,000 ( = EBIT + depreciation + amortization), its interest charges were $9,500, it had to repay $26,000 of long-term debt, and it had to make a payment of $17,400 under a long-term lease. The firm had no amortization charges. What was the EBITDA coverage ratio?

Select the correct answer.

a. 3.51
b. 4.28
c. 5.05
d. 5.82
e. 6.59

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Machine Learning In Finance From Theory To Practice

Authors: Matthew F Dixon, Igor Halperin, Paul Bilokon

1st Edition

3030410676, 978-3030410674

More Books

Students also viewed these Finance questions