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A Firm Has EBIT of $1,000,000 and Depreciation Expense of $400,000

Question 128

Multiple Choice

A firm has EBIT of $1,000,000 and depreciation expense of $400,000. Fixed charges total $600,000. Interest expense totals $70,000. What is the firm's cash coverage ratio?


A) 1.00 times
B) 1.67 times
C) 2.33 times
D) 2.45 times

Correct Answer:

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