A firm has net income of $390, interest expense of $40 and depreciation of $50. The corporate tax rate is 35 percent. What is the Cash Coverage Ratio?

a)9.75
b)10.67
c)11.00
d)14.41
e)17.25

My Attempt to the Question
Cash Coverage Ratio = (EBIT + Depreciation)/ Interest

EBIT = 390*35% = 526.50
Cash Coverage Ratio = (526.50+50)/40 = 14.41

Can you explain to me if my approach was correct and help me understand the correct way to approach this kind of question.
Thanks In Advance

OK, but I think there are a couple of problems with your calculation of EBIT.
1. Taxes are on the net income before taxes. At a tax rate of 35%, this would be calculated as (Net Income)/(1 - tax rate).
2. To calculate EBIT, you also need to add the interest expense back in.
If you make those changes, you'll get a different answer.