Question: Please answer question 3 and 4 4 1 2 REVENUE 600 624 649 COGS 450 GROSS PROFIT 150 SG&A 79 75 77 DEPRECIATION 30 30

Please answer question 3 and 4

Please answer question 3 and 4 4 1 2 REVENUE 600 624

4 1 2 REVENUE 600 624 649 COGS 450 GROSS PROFIT 150 SG&A 79 75 77 DEPRECIATION 30 30 30 OPERATING INCOME 45 EBITDA 75 Debt 300 300 300 NOTES: (1) Revenue increase in year 2 is 4% volume driven, 0% price driven (2) Revenue increase in year 3 is 3% price driven, 1% volume driven (3) In year 1, $250 of COGS are variable and $200 are fixed 3. Project Revenue, COGS and EBITDA in years 4 and 5. Assume 5% revenue growth driven by 3% volume increase and 2% price increase in each year 4. Calculate Debt/EBITDA and interest coverage in years 4 and 5 un

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