Question: What is the fixed charge coverage ratio? Answer in the form of 3.2x (one decimal place) Assume: 1. Tax rate - 25% 2. Depreciation

What is the fixed charge coverage ratio? Answer in the form of

What is the fixed charge coverage ratio? Answer in the form of 3.2x (one decimal place) Assume: 1. Tax rate - 25% 2. Depreciation - $2mm 3. Capital Expenditures - $3mm 4. Pre-tax net Income - $20mm 5. Interest expense - $4mm 6. Debt due within one year - $7mm 7. Accounts receivable - $2.5mm

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