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Allston-Brighton Corp. has total assets of $10 million, total liabilities of $4 million, of which $1 million are non-interest bearing. Interest expense was $180,000. Earnings before interest and taxes were $2.5 million. Depreciation was $1.5 million. Compute the following ratios: Debt ratio, Interest-bearing debt ratio, Times interest earned ratio, and EBITDA coverage ratio.
Central Processing Units
The primary component of a computer that performs most of the processing inside a computer to execute instructions from both hardware and software.
Systems Competition
A form of competition that occurs not just between individual products or services, but between entire systems or platforms.
Network Externalities
The effect that one user of a product or service has on the value of that product to other people, often positive, where the value increases as more people use it.
Profit-maximizing
The process or strategy of adjusting production and sale levels to achieve the highest possible profit.
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