Question

Lever Age pays an 9% rate of interest on $10.10 million of outstanding debt with face value $10.1 million. The

firm’s EBIT was $1.1 million.

a. What is its times interest earned? (Round your answer to 2 decimal places.)

b. If depreciation is $210,000, what is its cash coverage ratio? (Round your answer to 2 decimal places.)

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