Question: Fixed Charge Coverage Ratio : Compute the fixed charge coverage ratio for a company with EBIT of $200,000, interest expense of $30,000, and lease payments

  1. Fixed Charge Coverage Ratio: Compute the fixed charge coverage ratio for a company with EBIT of $200,000, interest expense of $30,000, and lease payments of $20,000. What does this ratio indicate about the company's financial stability?

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