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Solution Library
Calculation Of Fixed Charge Coverage
Question
A firm has operating profit of $210,000 after deducting lease payments of $30,000. Interest expense is $50,000. What is the firm's fixed charge coverage?
a). 6.00x
b). 2.33x
c). 2.00x
d). 3.00x
Summary
The question belongs to Accounting and it discusses about calculation of a firm’s fixed charge coverage.
Total Word Count 24
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