Question: Need an answer to the question below relatively quick! THanks An industrial company is currently rated A-. It has an EBIT of $500 million and

Need an answer to the question below relatively quick!

THanks

An industrial company is currently rated A-. It has an EBIT of $500 million and an interest expense of $75 million. Suppose (1) the median interest coverage ratio for an A- rated industrial company is 4.0x, and (2) current interest level for a 5-year A- rated industrial company is 5%, the company can take on the following amount of additional debt without jeopardizing its credit rating (other financial figures being normal):

	a.	$2,000 million
	b.	$1,600 million
	c.	$1,200 million
	d.	$800 million

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