What is the formula for calculating the times-interest earned (TIE) ratio??
A. ?TIE ratio = Interest charges ÷ Total liabilities
B. ?TIE ratio = Earnings per share ÷ Interest charges
C. ?TIE ratio = Sales ÷ Interest charges
D. ?TIE ratio = EBIT ÷ Interest charges
E. ?TIE ratio = Interest charges ÷ Net income
Answer: D
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