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#8 The Border company had the following data: Sales $2,500,000 Cost of goods sold $987,654 Operating Costs $500,000 Depreciation $126,987 Interest Expense $98,000 Tax rate

#8 The Border company had the following data:
Sales $2,500,000
Cost of goods sold $987,654
Operating Costs $500,000
Depreciation $126,987
Interest Expense $98,000
Tax rate 40.00%
What is the Interest Coverage for the firm?
a Interest Coverage = 9.03
b Interest Coverage = 8.03
c Interest Coverage = 10.03
d Interest Coverage = 3.03
#9 You have found the following information.
The P/E ratio in 2019 15
The P/E ratio in 2020 18.5
Which of the following statements is the most accurate?
a The stock price has become relatively expensive.
b The stock price has become relatively inexpensive.
c The stock price has been relatively unchanged.
d The P/E ratio does not relate to the stock price.
#10 Which of the following statements is the most accuarate?
a Efficiency ratios measure how well assets turn into sales.
b Efficiency ratios measure how well assets turn into profits.
c Efficiency ratios measure how well assets turn into debt.
d Efficiency ratios measure how well assets relate to liabilities.

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