Chapter 2, Problem 33P

a)

Summary Introduction

To determine: The increased value of Company M’s debt from the year 2009 to 2013.

Introduction:

Any amount owed by a firm, government, or a person to a lender is termed as debts.

b)

Summary Introduction

To determine: The $\frac{\text{EBITDA}}{\text{Interest}}$ coverage ratio in 2009 and 2013, and whether the ratio falls  below 2.

Introduction:

$\frac{\text{EBITDA}}{\text{Interest}}$ indicates that the profit of the company is enough to pay its interest expenses. It is also known as EBITDA coverage.

c)

Summary Introduction

To discuss: Whether Company M’s ability meets its interest payments to improve or decline over the period.