A Firm Has EBIT of $300,000 and Depreciation Expense of $12,000

question 16

Multiple Choice

A firm has EBIT of $300,000 and depreciation expense of $12,000. Fixed charges total $44,000. Interest expense totals $7,000. What is the firm's cash coverage ratio?

• A) 3.76 times
• B) 4.91 times
• C) 7.25 times
• D) 7.09 times

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Definitions:

Job Description

A statement of the tasks, duties, and responsibilities of a job to be performed.

Critical Incidents Style

A method in management and organizational behavior focusing on identifying and understanding specific incidents that significantly impact an outcome or phenomenon.

Task Analysis Style

The approach or method taken to break down a job into its components to study how tasks are accomplished, often used in designing or improving jobs.

Job Analysis

The methodical process of collecting and examining information about the content and human requirements of jobs, as well as the context in which jobs are performed.