2. A firm has a times interest earned ratio of 2.7 times. This means b. c. d. e. The firm generated enough cash to cover its interest expense 2.7 times. The firm has sufficient EBIT to cover its interest expense 2.7 times. The interest expense of this fimm exceeded earnings before taxes by 2.7 times. The net income of this firm is sufficient to cover its interest expense 2.7 times. The firm eamed $1.00 in EBIT for every $2.70 it paid out in interest