medium · Corporate Credit Analysis
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?
- 4.44x
- 5.33x
- 7.11x
- 4.74x
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