Here are some data for five companies in the same industry: You have been asked to calculate
Question:
You have been asked to calculate a measure of times-interest-earned for the industry. Discuss the possible ways that you might calculate such a measure. Does changing the method of calculation make a significant difference to the end result?
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Company Code 18 30 15 100 80 10 EBIT 50 Interest expense
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Two obvious choices are a Total industry EBIT over total i...View the full answer
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Related Book For
Principles of Corporate Finance
ISBN: 978-0078034763
11th edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen
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