hard · Corporate Credit Analysis
An industrial company reports an EBITDA of $450 million and rent expense of $80 million. Its reported gross debt is $1.2 billion.
Following standard credit analyst adjustments for a pre-IFRS 16 environment, what is the adjusted Debt/EBITDA ratio using an 8x lease multiplier?
- 4.09x
- 2.26x
- 3.47x
- 2.67x
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