medium · Investment Banking
A private equity firm is checking the Fixed Charge Coverage Ratio (FCCR) of an LBO target.
If the company has EBITDA of $100, Capex of $20, Cash Taxes of $15, and Interest Expense of $25, what is its FCCR?
- 1.8x
- 2.6x
- 3.4x
- 4.0x
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