A Firm Has EBIT of $1,000,000 and Depreciation Expense of $400,000

question 128

Multiple Choice

A firm has EBIT of $1,000,000 and depreciation expense of $400,000. Fixed charges total $600,000. Interest expense totals $70,000. What is the firm's cash coverage ratio?

• A) 1.00 times
• B) 1.67 times
• C) 2.33 times
• D) 2.45 times

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Definitions:

Fourteenth Amendment

Added to the U.S. Constitution in 1868, guaranteeing equal protection under the laws to all citizens and crucial in extending civil rights and liberties.

Birthright Citizenship

The legal principle which grants citizenship to individuals born within a country's territories, regardless of their parents' nationality.

Equal Protection

A principle under the Fourteenth Amendment of the U.S. Constitution which provides that no state shall deny to any person within its jurisdiction the equal protection of the laws.

Civil War

A war between citizens of the same country, often referred to specifically as the American Civil War which took place between 1861 and 1865 between the Northern Union and the Southern Confederacy.