Calculate the fixed burden coverage and cash flow to debt ratio given the following EBIT $700,000 depreciation and amortization $60,000 preferred dividend $50,000 sinking fund payments $10,000 tax rate 20 debt $200,000 Why do analysts use EBITDA more often than EBIT ...

EBITDA EBIT D A 700000 60000 760000 Analysts use EBITDA mo ...

Calculate the fixed burden coverage and cash-flow-to-debt ratio given the following: EBIT = $700,000; depreciation and amortization

Question:

Calculate the fixed burden coverage and cash-flow-to-debt ratio given the following: EBIT = $700,000; depreciation and amortization = $60,000; preferred $50,000; sinking fund payments = $10,000; tax rate = 20%; debt = $200,000. Why do analysts use EBITDA more often than EBIT?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...