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Calculate the times interest earned (TIE) ratio for Company FF, with earnings before interest and taxes (EBIT) of $600,000 and interest expenses of $100,000. Discuss

  • Calculate the times interest earned (TIE) ratio for Company FF, with earnings before interest and taxes (EBIT) of $600,000 and interest expenses of $100,000. Discuss the significance of the TIE ratio as a measure of a company's ability to meet its interest obligations and manage financial risk.

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