Lever Age pays an 9% rate of interest on $9.10 million of outstanding debt with face value $9.1 million. The firm’s EBIT was $2.9 million. What is its times interest earned? Note: Round your answer to 2 decimal places. If depreciation is $110,000, what is its cash coverage ratio? Note: Round your answer to 2 decimal places.
Lever Age pays an 9% rate of interest on $9.10 million of outstanding debt with face value $9.1 million. The firm’s EBIT was $2.9 million. What is its times interest earned? Note: Round your answer to 2 decimal places. If depreciation is $110,000, what is its cash coverage ratio? Note: Round your answer to 2 decimal places.
Foundations of Business - Standalone book (MindTap Course List)
4th Edition
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter15: Using Management And Accounting Information
Section: Chapter Questions
Problem 5DQ
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Question
Lever Age pays an 9% rate of interest on $9.10 million of outstanding debt with face value $9.1 million. The firm’s EBIT was $2.9 million.
-
What is its times interest earned?
Note: Round your answer to 2 decimal places.
-
If
depreciation is $110,000, what is its cash coverage ratio?Note: Round your answer to 2 decimal places.
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