Question: Problem - Leverage Ratios On $9.70 million in outstanding debt with a face value of $9.7 million, Teknosa pays a 9% interest rate. EBIT was

Problem - Leverage Ratios

On $9.70 million in outstanding debt with a face value of $9.7 million, Teknosa pays a 9% interest rate. EBIT was $450 million for the company.

a. Calculate the company's times interest earned. (Be sure to round your answer to the nearest two decimal places.)

b. What is the cash coverage ratio if depreciation is $170,000? (Be sure to round your answer to the nearest two decimal places.)

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