1. The Lemand Corporation Has $8million Of 10% Mortgage Bond. Find Pre-tax Interest Coverage [(income Before Taxes+bond Interest) / Bond Interest)] Remains Greater Than 4. Can You Answer This?

Let x = the no. Of millions of dollars of new debt that can be issued.
                     $4.+$ 0.8 +.10x / $0.8 + 0.10x = 4
                     $3.2 + .40x = $ 4.8 + 0.10x
           &nbs
p;           .30x = $ 1.6
           &nbs
p;           x = $ 5.333
 

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