hard · Private Equity
A company generates $100M of EBITDA. It has $20M in Capex, $15M in Interest, and $10M in Taxes.
If it is required to maintain a Fixed Charge Coverage Ratio (FCCR) of 1.5x, what is the maximum mandatory debt principal repayment it can sustain?
- $15.0M
- $42.5M
- $53.3M
- $28.3M
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