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A Firm Has EBIT of $400,000 and Depreciation Expense of $20,000

Question 112

Multiple Choice

A firm has EBIT of $400,000 and depreciation expense of $20,000. Fixed charges total $50,000. Interest expense totals $7,000. What is the firm's fixed-charge coverage ratio?


A) 7.60 times
B) 8.00 times
C) 8.40 times
D) 8.54 times

Correct Answer:

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