Ziebart Corp

Multiple Choice

Ziebart Corp.'s EBITDA last year was $390,000 ( = EBIT + depreciation + amortization) , its interest charges were $9,500, it had to repay $26,000 of long-term debt, and it had to make a payment of $17,400 under a long-term lease.The firm had no amortization charges.What was the EBITDA coverage ratio?

A) 7.32
B) 7.70
C) 8.09
D) 8.49
E) 8.92