Answer: 8x.

The correct answer is **B** (8x). **Explanation:** - The interest coverage ratio using EBIT (Earnings Before Interest and Taxes) is calculated as: \[ \text{Interest Coverage Ratio} = \frac{\text{EBIT}}{\text{Interest Expense}} \] - Here, EBIT is equivalent to the operating income, which is $120 million. - Therefore, the calculation is: \[ \frac{120}{15} = 8 \] **Why not A or C?** - **Option A (7x)** incorrectly uses net income plus depreciation and amortization, which is not the correct measure for EBIT. - **Option C (9x)** incorrectly includes depreciation and amortization in the numerator, resulting in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), not EBIT.

Author: LeetQuiz Editorial Team