Find the interest coverage ratio find the leverage


The following data relate to the credit risk of ABC Corp. Debt is $60 mil, EBIT is $20 mil, interest expense is $5 mil. Total asset is $170 mil.

A) Find the interest coverage ratio.

B) If the Debt/Equity ratio is 1.5x, find the Book Value of Equity

C) Find the leverage ratio.

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Financial Management: Find the interest coverage ratio find the leverage
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