Sectors, Inc

question 25

Multiple Choice

Sectors, Inc., has an EBIT of $7,221,643 and interest expense of $611,800. Its depreciation for the year is $1,434,500. What is its cash coverage ratio? Round your final answer to two decimal places.

• A) 15.42 times
• B) 18.34 times
• C) 14.15 times
• D) None of the above

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Definitions:

Market Value

The existing cost for purchasing or selling an asset or service in the public marketplace.

Stock Price

The monetary value of a share of a company's stock traded on a stock exchange.

Reverse Stock Splits

A corporate action in which a company reduces the total number of its outstanding shares to increase the share price without altering the company's market capitalization.

Shares Outstanding

The total number of shares of stock that are currently owned by shareholders, including those held by institutional investors and restricted shares.