hard · Corporate Credit Analysis
An analyst is adjusting the debt of a retailer with $1.2 billion in reported gross debt and $150 million in annual rent expense.
Using the standard 8.0x multiplier for operating lease capitalization, what is the adjusted Debt/EBITDA ratio if reported EBITDA is $400 million?
- 4.36x
- 6.00x
- 3.00x
- 5.45x
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