is the firm's EBITDA coverage?
A) 3.29
B) 3.46
C) 3.64
D) 3.82
E) 4.01

Name: is the firm's EBITDA coverage? A) 3.29 B) 3.46 C) 3.64 D) 3.82 E) 4.01
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Question

Quizplus · Accepted Answer

EBITDA coverage is calculated by dividing EBITDA by interest expenses. In this case, the EBITDA is $582 million and the interest expense is $160 million. Thus, the EBITDA coverage is 3.64 ($582 million / $160 million). Therefore, the correct choice is C.

Is the Firm's EBITDA Coverage