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

---

Definitions:

Outcome Simulations

The process of mentally visualizing the outcomes of specific actions or behaviors.

Universal Grammar

A theory in linguistics that suggests that the ability to acquire language is innate, and that all human languages share a common underlying structure.

Noam Chomsky

An American linguist, philosopher, and cognitive scientist known for revolutionizing the study of linguistics with his theory of generative grammar.

Neural Network

A computational model designed to simulate the way human brains analyze and process information, consisting of interconnected nodes or neurons.