Ziebart Corp.'s EBITDA last year was $345,000 ( = 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. 4.63     b. 7.59     c. 6.11     d. 6.85     e. 5.37

Question

Ziebart Corp.'s EBITDA last year was $345,000 ( = 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. 4.63  
  b. 7.59  
  c. 6.11  
  d. 6.85  
  e. 5.37

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