Question: 1) Explain what Debt Service Coverage Ratio is? 2) Calculate Debt Service Coverage Ratio with following givens: a. Annual Depreciation: 2.778 million b. Interest Expense:

1) Explain what Debt Service Coverage Ratio is?

2) Calculate Debt Service Coverage Ratio with following givens:

a. Annual Depreciation: 2.778 million

b. Interest Expense: 1.776 million

c. Net Income: 2.458 million

d. Assume Principal Payment for long-term debt is: 1 million

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