Question: Harriett Industries has $7.5B in total assets. Its basic earning power ratio is 10% and its TIE ratio is 2.5. Harrietts depreciation and amortization expenses

Harriett Industries has $7.5B in total assets. Its basic earning power ratio is 10% and its TIE ratio is 2.5. Harrietts depreciation and amortization expenses total $1.25B. It has $775M in lease payments and $500M must go towards principal payments on its loans and long term debt. What is Harrietts EBITDA coverage ratio? BEP = EBIT/Total Assets TIE = EBIT/Interest EBITDA Coverage Ratio = (EBIT + Depreciation & Amortization + Lease Payment)/(interest+ Principal + lease Payment)

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