as titled, say if I have EBIT of 1000, original interest of 50, old lease cost per year of 500, if i have 6% interest rate, 10 years, total capitalized lease cost of 3690, why am I calculating interest coverage as
adjusted EBIT (1000+500-3680/10)
adjusted interest 50+6%*3680
I think I am confused by the 3680/10 vs 3680*6% difference
Thanks
adjusted EBIT (1000+500-3680/10)
adjusted interest 50+6%*3680
I think I am confused by the 3680/10 vs 3680*6% difference
Thanks