EBIT goes from $30M to $33M; Depreciation goes from $10M to $12M; and interest expense goes from $6 M to $8M.
a. What is the percent change in the numerator of the cash coverage ratio?
b. What is the percent change in the denominator of the cash coverage ratio?
A. 13.33%; 12.50%
B. 12.50%; 33.33%
C. 8.45%; 15.38%
D. 13.33%; 33.33%