Question: Financial Management. Thanks for your help! Question Help Problem 12-5 (similar to) Suppose a firm has EBIT of $4.73 million, interest expenses of $1.85 million,

Financial Management. Thanks for your help!

Financial Management. Thanks for your help! Question Help Problem 12-5 (similar to)

Question Help Problem 12-5 (similar to) Suppose a firm has EBIT of $4.73 million, interest expenses of $1.85 million, depreciation expenses of $1.31 million, and has a tax rate of 35 percent. Its bank agrees to lend up to 36 times its EBITDA. How much debt can the firm borrow from the bank? The maximum the fim can borrow is S milion. (Round to two decimal places)

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