Earnings before interest and taxes is $74,300. Interest is $8,162 and depreciation is $8,300. The tax...

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Earnings before interest and taxes is $74,300. Interest is $8,162 and depreciation is $8,300. The tax rate is 34%. What is th

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Answer 1

Answer #1

Cash coverage ratio:

= (EBIT+Depreciation)/Interest expense

= ($74,300+$8,300)/$8,162

= 10.12

Hence, correct option is 10.12

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Answer 2

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