An industrial company is currently rated A-. It has an EBIT of $500 million and an interest expense of $75 million. Suppose the median interest coverage ratio for an A- rated industrial company is 4.0x, and current interest level for a 5-year A- rated industrial company is 5%, How much additional debt can the company take on without jeopardizing its credit rating (other financial figures being normal):

Answer rating: 100% (QA)

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