"> (Solution) -When calculating Interest coverage for a FRITCO analysis of risk how would determine the Interest Coverage if you had a 5 million dollar loan at 8%... Paper Detail – Transwriters

### (Solution) -When calculating Interest coverage for a FRITCO analysis of risk how would determine the Interest Coverage if you had a 5 million dollar loan at 8%...

Description

The Question

When calculating Interest coverage for a FRITCO analysis of risk how would determine the Interest Coverage if you had a 5 million dollar loan at 8% annual interest with a modified EBIT of 2.6, Depreciation of 1.0 and existing interest of 0.5.  If you could please explain all of the numbers and why they go where they do that would be great.  The answer is 3.33 but I can't figure out why.  And how would this differ if you had the same EBIT, Depreciation and existing interest but instead had 5 million in preferred stock with an annual dividend of \$475,000. Thank you.

#### Solution details

Solution #0009147624319

##### (Solution) -When calculating Interest coverage for a FRITCO analysis of risk how would determine the Interest Coverage if you had a 5 million dollar loan at 8%....zip

This paper was answered on 10-Jan-2018

STATUS

QUALITY

Approved

Jan 10, 2018

EXPERT

Tutor

#### TUTORIAL SOLUTIONS

We have high quality solutions you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

• As a reference for in-depth understanding of the subject.
• As a source of ideas / reasoning for your own research (if properly referenced)
• For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

### Order New Solution. Quick Turnaround

Click on the button below in order to Order for a new homework help. Place a New Order using the button below.