Question
Alex Corp's sales last year were $635,000, its operating costs were $415,500, and its interest charges were $13,500. What was the firm's times-interest-earned (TIE) ratio?
Alex Corp's sales last year were $635,000, its operating costs were $415,500, and its interest charges were $13,500. What was the firm's times-interest-earned (TIE) ratio? (Hint: EBIT = Sales Operating Costs)
| 15.45 | ||
| 16.26 | ||
| 17.83 | ||
| 13.74 | ||
| 14.57 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Public Finance
Authors: Harvey S. Rosen
5th Edition
025617329X, 978-0256173291
