Question: What is the fixed charge coverage ratio? Answer in the form of 9 (no decimal places) Assume: 1. Tax rate 25% 2. Depreciation $2mm 3.

What is the fixed charge coverage ratio? Answer in the form of 9 (no decimal places) Assume: 1. Tax rate 25% 2. Depreciation $2mm 3. Capital Expenditures - $3mm 4. Pre-tax net Income - $52mm 5. Interest expense - $4mm 6. Debt due within one year $7mm 7. Accounts receivable $2.5mm 8. US Treasury rate 4%

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