medium · Corporate Credit Analysis
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?
- 3.83x
- 7.83x
- 2.50x
- 4.70x
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