Question: Ziebart Corp.'s EBITDA last year was $395,000 ( = EBIT + depreciation + amortization), its interest charges were $9,500, it had to repay $26,000 of

Ziebart Corp.'s EBITDA last year was $395,000 ( = EBIT + depreciation + amortization), its interest charges were $9,500, it had to repay $26,000 of long-term debt, and it had to make a payment of $17,400 under a long-term lease. The firm had no amortization charges. What was the EBITDA coverage ratio?

Select the correct answer.

a. 5.28

b. 6.54

c. 7.80

d. 5.91

e. 7.17

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