A company's interest expense is $15,000. Its income before interest expense and income taxes is $86,250. Its net income is $31,900. The company's times interest earned ratio equals:

A. 0.37.
B. 0.47.
C. 5.75.
D. 2.70.
E. 0.174.


Answer: C

Business

You might also like to view...

Brisa recently had a baby. When she returned from maternity leave, her manager assumed that she would want to work fewer hours and would be distracted by things at home. Although Brisa’s performance remained as high as it had been before the baby, her boss gave her lower marks on her performance appraisal. It is likely her manager made an error due to ______.

A. similarity B. stereotyping C. proximity D. contrast

Business

The contribution margin ratio can also be expressed as a percentage.

Answer the following statement true (T) or false (F)

Business

________ leadership involves inspiring followers to commit to a shared vision that provides meaning to their work while also serving as a role model who helps followers develop their own potential and view problems from new perspectives.

A. Laissez-faire B. Contingent reward C. Management-by-exception D. Transformational E. Transactional

Business

The power of the test refers to the probability of rejecting a false null hypothesis

Indicate whether the statement is true or false

Business