Pettijohn Inc.
The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.

-Refer to the data for Pettijohn Inc.What is the firm's EBITDA coverage?
A) 3.29
B) 3.46
C) 3.64
D) 3.82
E) 4.01

Question

Pettijohn Inc.
The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.
 
-Refer to the data for Pettijohn Inc.What is the firm's EBITDA coverage?
A) 3.29 
B) 3.46 
C) 3.64 
D) 3.82 
E) 4.01

Quizplus · Accepted Answer

EBITDA covg = (EBITDA + lease)/(Int + principal + lease) = 3.64

Pettijohn Inc. the Balance Sheet and Income Statement Shown Below Are for Are