Coverage Ratios: Sectors, Inc

question 44

Multiple Choice

Coverage ratios: 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?

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

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Definitions:

Personality

A combination of emotional, attitudinal, and behavioral response patterns of an individual that are characteristic over time and across situations.

Gratification

The state of being pleased or fulfilled.

Desires

Intense desires or aspirations for something to occur or exist.

Continuing Desire

An ongoing or persistent yearning or craving for something, often with emotional significance.