A times$-$interest$-$earned ratio of $4\mathrm{.}3$ indicates that the firm

Multiple Choice

pays $4\mathrm{.}3$ times its earnings in interest expense.

has EBIT equal to $4\mathrm{.}3$ times its interest expense.

has interest expense equal to $4\mathrm{.}3\%$ of EBIT.

has interest expense equal to $4\mathrm{.}3\%$ of net income.