Response to the following problem:
Lever Age pays a(n) 9% rate of interest on $9.1 million of outstanding debt with face value $9.1 million. The firms EBIT was $2.9 million.
a. What is times interest earned? (Round your answer to 2 decimal places.)
b. If depreciation is $110,000, what is cash coverage? (Round your answer to 2 decimal places.)
c. If the firm must retire $210,000 of debt for the sinking fund each year, what is its "fixed-payment cash-coverage ratio" (the ratio of cash flow to interest plus other fixed debt payments)? (Round your answer to 2 decimal places.)