Use the table for the question(s)below.
Consider the following income statement and other information:
Luther Corporation
Consolidated Income Statement
Year ended December 31 (in $ millions)
-Luther's EBIT coverage ratio for the year ending December 31,2018 is closest to:
A)1.64.
B)1.78.
C)1.98.
D)2.19.

Question

Use the table for the question(s)below.
Consider the following income statement and other information:
Luther Corporation
Consolidated Income Statement
Year ended December 31 (in $ millions) 
-Luther's EBIT coverage ratio for the year ending December 31,2018 is closest to:
A)1.64. 
B)1.78. 
C)1.98. 
D)2.19.

Quizplus · Accepted Answer

Luther's EBIT coverage ratio for the year ending December 31, 2018 is 1.64. This is calculated by dividing EBIT by interest expense.

Use the Table for the Question(s)below