A firm has total interest charges of $10,000 per year, sales of $1 million, a tax rate of 40 percent, and a net profit margin of 6 percent. What is the firm's times-interest-earned ratio?

a. 16 times
b. 10 times
c. 7 times
d. 11 times
e. 20 times


d

Business

You might also like to view...

An advertisement in a local newspaper featuring a special price on ladies swimwear illustrates a(n) _____ ad

a. pioneer b. reminder c. competitive d. institutional

Business

Which salutation uses correct capitalization?

A) dear manager Kohler: B) Dear manager Kohler: C) Dear Manager Kohler:

Business

Which of the following is NOT a commerce restriction?

a. taxes b. tariffs c. price d. quotas

Business

The purpose of a rotating schedule is to:

A) assign each employee to work the same days and hours each week. B) assign senior employees more opportunity to have weekends off. C) deal with certain undesirable aspects of several individual workforce schedules. D) make sure the legal constraints imposed on workforce schedules are satisfied.

Business