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Lever Age pays an 8% rate of interest on $9.80 million of outstanding debt with...

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Accounting

Lever Age pays an 8% rate of interest on $9.80 million of outstanding debt with face value $9.8 million. The firms EBIT was $2.2 million.

a. What is its times interest earned? (Round your answer to 2 decimal places.)

b. If depreciation is $180,000, what is its cash coverage ratio? (Round your answer to 2 decimal places.)

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