Driver enterprises reports earnings before interest and taxe

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Driver Enterprises reports earnings before interest and taxes (EBIT) of $367,040 and interest expense of $31,602. Included in its reported operating expenses were operating lease expenses of $150,024. In a footnote, the company reports that it has future operating lease obligations of $18,962 per year for each of the next 5 years. The firm pays 6% on its debt financing. Using the present value method, calculate the interest coverage ratio of the firm after incorporating the impact of the operating leases. Present your answer rounded to two decimal places, e.g., 20.00.

Reference no: EM13888866

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