Question: Please help solve the following. Please see details below: 1 2 3 5 Revenues 500 515 536 COGS 300 306 314 Gross Profit 200 209


Please help solve the following.
Please see details below:


1 2 3 5 Revenues 500 515 536 COGS 300 306 314 Gross Profit 200 209 222 SG&A 100 102 104 Operating Income 100 107 118 Depreciation 30 30 30 EBITDA 130 137 148 Debt 300 300 300 Notes: (1) revenue growth in years 2 and 3 is all volume driven (2) COGS in year 1 is 67% variable 1. Project revenues, COGS, SG&A and EBITDA in years 4 and 5. Explain your reasoning/assumptions orpar couis and EBITDA verage in 2. Calculate Debt/EBITDA and interest coverage in years 3, 4 and 5.Calculating Interest Coverage and Fixed When calculating interest expense : 1 . Use 6% multiplied by debt outstanding when : A. It is an Investment Grade company and / or B. Debt / EBITDA is less than 3x 2. Use 10 % multiplied by debt outstanding when : A . It is a High Yield company and / or B. Debt / EBITDA is greater than 3x
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