Ziebart Corp.'s EBITDA last year was $430,000 ( = 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? Select the correct answer. a. 8.95 b. 7.97 c. 8.46 d. 7.48 e. 9.44

Ziebart Corp.'s EBITDA last year was $430,000 ( = 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? Select the correct answer. a. 8.95 b. 7.97 c. 8.46 d. 7.48 e. 9.44

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter19: Lease Financing

Section: Chapter Questions

Problem 7MC: (1) Assume that the lease payments were actually 280,000 per year, that Consolidated Leasing is also...

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