medium · Corporate Credit Analysis credit-metrics

A retail company reports $2,000 million in senior debt and $450 million in reported EBITDA. The company also has $150 million in annual operating lease expenses.

Using a standard 8x capitalization multiplier for the industry, what is the lease-adjusted total leverage ratio?

  1. 4.44x
  2. 5.33x
  3. 7.11x
  4. 4.74x

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