Question

Peterson Packaging Corp. has a basic earning power of (BEP) of 9% on $9 billion of total assets, and its times interest earned (TIE) ratio is 3.0. Peterson's depreciation and amortization expense totals $1 billion. It has $0.6 billion in lease payments and $0.3 billion must go towards principal payments on outstanding loans and long-term debt. What is Peterson's EBITDA coverage ratio

Answer 1

Answer: A basic earning power of (BEP) of 9% on $9 billion of total assets.

ratio is 3.0. Peterson's depreciation and amortization expense totals $1 billion.

amortization expense totals $1 billion. It has $0.6 billion in lease payments and $0.3 billion must go towards principal payments.