Ziebart Corp.'s EBITDA last year was $430,000 ( = 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. 8.95     b. 7.97     c. 8.46     d. 7.48     e. 9.44

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Ziebart Corp.'s EBITDA last year was $430,000 ( = 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. 8.95  
  b. 7.97  
  c. 8.46  
  d. 7.48  
 

e. 9.44

 

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