hard · Private Equity
Precision Manufacturing has a senior debt covenant requiring a Debt Service Coverage Ratio (DSCR) of at least 1.5x. In a given year, EBITDA is $100M, Capex is $20M, Interest is $30M, and mandatory Principal repayment is $20M. Calculate the actual DSCR.
- 2.50x
- 2.00x
- 1.25x
- 1.60x
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