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D) The net income of the company would be understated. Question 24 24) The information related to interest expense of Stereo Music is given below:

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D) The net income of the company would be understated. Question 24 24) The information related to interest expense of Stereo Music is given below: $255,000 102,000 65,000 Net income ncome tax expense nterest expense Based on the above data, which of the following is the interest coverage ratio? A) 414 times B) 3.92 times C) 6.49 times D) 4.92 times Question 25 25) The times-interest-eamed ratios of four companies are given below: 8. orge Corp ellow Inc Stacy Corp Bennett Inc. 9

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