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For any business how do I caculate debt capacity coverage ...

Sent to General Experts April 15, 2006 8:40 p.m.

For any business how do I caculate debt capacity coverage to see if a business can handle additional debt?

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port charlotte, Florida

Customer (name blocked for privacy)

Status: Closed Value: $10

Answer
April 16, 2006 12:49 a.m. (4 hours and 8 minutes later)

ACCEPTED

Net profit plus depreciation, depletion, and amortization expenses divided by the current portion of long-term debt.

http://www.midcapcpas.com/coverage_ratio.htm

Candy -- Teacher -- No feedback on 1 General accepts
20 years experience

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