medium · Private Credit underwriting-credit-analysis
A firm has $80 million of debt and $20 million of reported EBITDA. Due to IFRS 16, they capitalized $10 million in leases, which moved $2 million of rent expense out of EBITDA and into D&A and Interest.
If the lender uses 'Pre-IFRS 16' EBITDA for leverage, what is the leverage multiple?
- 5.00x
- 4.44x
- 4.50x
- 4.00x
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