Question

EBIT goes from $30M to $33M; Depreciation goes from $10M to $12M; and interest expense goes from $6 M to $8M.1. What is the percent change in the numerator of the cash coverage ratio?2. 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%

Answer 1

Answer:None of the above= 10% and 33.33%

Explanation:

Coverage ratio EBIT/Interest expenses

Change in numerator =3/30*100

Change in denominator= 2/6*100