Calculate interest coverage, fixed charge coverage and Debt/EBITDA in year 4. Assume the company was purchased...

 
  

 

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Calculate interest coverage, fixed charge coverage and Debt/EBITDA in year 4. Assume the company was purchased for a 7x multiple at the end of year 1, financed with 1650 of debt. If the company were sold at the end of year 4 for the same multiple, what would the equity return be? Use the information Yr.1 Yr.4 Revenues 2000 2300 EBITDA 800 900 Debt 1650 1400 Rent 200 200 to answer questions Calculate interest coverage, fixed charge coverage and Debt/EBITDA in year 4. Assume the company was purchased for a 7x multiple at the end of year 1, financed with 1650 of debt. If the company were sold at the end of year 4 for the same multiple, what would the equity return be? Use the information Yr.1 Yr.4 Revenues 2000 2300 EBITDA 800 900 Debt 1650 1400 Rent 200 200 to answer questions

Answer rating: 100% (QA)

To calculate interest coverage we first need to find the interest expense We can find this by subtra... View the full answer