Ziebart Corp

question 58

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

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Definitions:

Annually

Pertaining to something that occurs once every year or relating to a period of one year.

Line of Credit

A flexible loan arrangement with a bank or lender, allowing the borrower to draw funds as needed up to a certain limit.

Simple Interest

Interest assessed only on the original investment, without consideration for compounding.

Annual Rate

The amount of interest, return, or other financial change represented annually, often as a percentage.