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Calculate Cash Coverage Ratio Given the Following Information: Depreciation Expense

Question 129

Multiple Choice

Calculate cash coverage ratio given the following information: depreciation expense = $6,000; EBIT = $12,000; times interest earned = 4 times.


A) 6.0 times
B) 6.5 times
C) 7.0 times
D) 7.5 times
E) 8.0 times

Correct Answer:

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