Solution-What is the company interest coverage ratio

What is the company interest coverage ratio

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Reference no: EM132551189

In 2020, Ferez Inc. (Ferez) earned a gross profit of 40% on sales of $8.0 million. Operating expenses (selling, administrative and depreciation expenses) for the year totalled $2.0 million. Ferez's only interest-bearing debt is a 5.0%, $3.0 million bond issue.

Question 1: Assuming that Ferez's corporate tax rate is 30%, what is the company's interest coverage ratio?

Reference no: EM132551189

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What is the company interest coverage ratio : Assuming that Ferez's corporate tax rate is 30%, what is the company's interest coverage ratio? In 2020, Ferez Inc. (Ferez) earned a gross profit of 40%

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What is the company interest coverage ratio

Reference no: EM132551189

Reference no: EM132551189

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