It has 06 billion in lease payments and 03 billion must go


Peterson Packaging Corp. has a basic earning power of 9% on $9 billion of total assets, and its times interest earned ratio is 3.0. Peterson's depreciation and amortization expense totals $1 billion. It has $0.6 billion in lease payments and $0.3 billion must go towards principal payments on outstanding loans and long-term debt. What is Peterson's EBITDA coverage ratio?

a.2.06
b.1.52
c.2.25
d.1.10
e.2.77

 

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Finance Basics: It has 06 billion in lease payments and 03 billion must go
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