Question
How is the times-interest-earned ratio calculated? a) by dividing earnings before interest charges and dividends paid to shareholders by interest charges b) by dividing earnings
How is the times-interest-earned ratio calculated?
a) by dividing earnings before interest charges and dividends paid to shareholders by interest charges
b) by dividing earnings before interest charges and taxes by interest charges
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Solution The timesinterestearned ratio is calculated as Answerb by dividing earnings before interest ...
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Advanced Financial Accounting
Authors: Theodore E. Christensen, David M. Cottrell, Cassy JH Budd
11th edition
78025877, 978-0078025877
