Use the table for the question(s)below.
Consider the following income statement and other information:
-Luther's EBITDA coverage ratio for the year ending December 31,2009 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's EBITDA coverage ratio for the year ending December 31,2009 is closest to:
A)1.64 
B)1.78 
C)1.98 
D)2.19

Quizplus · Accepted Answer

B)EBITDA Coverage ratio = (EBIT + Dep & Amort)/(Interest Expense)=
(41.2 + 3.6)/25.1 = 1.7849

Use the Table for the Question(s)below