medium · Corporate Credit Analysis credit-metrics

Urban Retailers reports a GAAP EBITDA of $120M and an annual rent expense of $80M. The company has $300M in reported balance sheet debt.

Using a standard industry multiplier of 8x for lease capitalization, what is the lease-adjusted Debt/EBITDA ratio for this credit?

  1. 3.83x
  2. 7.83x
  3. 2.50x
  4. 4.70x

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