medium · Corporate Credit Analysis

A company has 80 million inEBITDA,$20 million in Capex, $10 million inCash Taxes, and $20 million in Cash Interest.

What is its Discretionary Cash Flow (DCF) interest coverage ratio assuming no dividends are paid?

  1. 3.50x
  2. 1.50x
  3. 4.00x
  4. 2.50x

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