easy · Investment Banking valuation-core

A bank is evaluating a company's ability to service its debt. The company has EBITDA of $300 million, Capital Expenditures of $100 million, and Interest Expense of $50 million. Calculate the (EBITDA - Capex) / Interest coverage ratio.

  1. 4.0x
  2. 2.0x
  3. 6.0x
  4. 3.0x

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