Problempeterson packaging corp has a basic earning power of, Ask an Expert

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Problem:

Peterson Packaging Corp. has a basic earning power of 9% on $9 billion of total assets, and its times interest earned ratio is 3.0. Peterson's depreciation and amortization expense totals $1 billion. It has $0.6 billion in lease payments and $0.3 billion must go towards principal payments on outstanding loans and long-term debt.

Required:

Question: What is Peterson's EBITDA coverage ratio?

a.2.06

b.1.52

c.2.25

d.1.10

e.2.77

Note: Be sure to show how you arrived at your answer.

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Category:- Basic Finance
Reference No.:- M91148672

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