NO.PZ2019120301000222
问题如下：
Question
A company’s debt covenant requires it to maintain an interest coverage of 2.25; the ratio is calculated using total interest paid. The following information is taken from the company’s 2014 financial statements:
Interest is allocated and capitalized to construction in progress by applying the firm’s cost of borrowing rate to qualifying assets. Interest capitalized in 2014 is $66.
Note 13: Long-Term Debt
All bonds were issued at par.
The most appropriate statement about the company’s debt covenant restriction in 2014 is that the firm:
选项：
A.just satisfied it. B.failed to meet it by at least 5%. C.exceeded it by at least 5%.解释：
Solution
A is correct.
Because the bonds were issued at par, no amortization of premiums or discounts is included in interest paid.
B is incorrect. It does not adjust EBIT for depreciation related to interest = 389/188 = 2.07: violates threshold. This is (2.07/2.25 – 1) = 8.8% below the threshold (more than 5% below).
C is incorrect. It is the unadjusted TIE = 389/122 = 3.19: exceeds threshold. This is (3.19/2.25 – 1) = 41.7% above the threshold (more than 5%).
麻烦助教老师了，。。为啥要调整分子和分母呢。。。
