The long-term debt section of the balance sheet of Queen's Corporation appears as follows: 9%% mortgage bonds 2,500,000 12 %% second mortgage bonds 1,500,000 10 %% debentures 1,000,000 12 %% subordinated debentures 1,000,000 If the earnings before interest and taxes of the company is $ 1.5 million and all debt is long term, what is the overall interest coverage?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The long-term debt section of the balance sheet of Queen's
Corporation appears as follows:
9%% mortgage bonds
2,500,000
12 %% second mortgage bonds
1,500,000
10 %% debentures
1,000,000
12 %% subordinated debentures 1,000,000
If the earnings before interest and taxes of the company is $ 1.5
million and all debt is long term, what is the overall interest
coverage?
Transcribed Image Text:The long-term debt section of the balance sheet of Queen's Corporation appears as follows: 9%% mortgage bonds 2,500,000 12 %% second mortgage bonds 1,500,000 10 %% debentures 1,000,000 12 %% subordinated debentures 1,000,000 If the earnings before interest and taxes of the company is $ 1.5 million and all debt is long term, what is the overall interest coverage?
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