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In year ending 2010, ABC Corp had Total Asset of $ 523m, Total Debt of $367m, EBIT of $ 422m and Interest Expenses of $98m.

In year ending 2010, ABC Corp had Total Asset of $ 523m, Total Debt of $367m, EBIT of $ 422m and Interest Expenses of $98m. Calculated values of Leverage Ratios are listed as answer and name of the ratios as questions. Can you match the answers with the ratios?

Answer

Total Debt Ratio (TD/TA)=?

Debt to Equity (TD/TE) Ratio=?

Equity Multiplier (EM)=?

Times Interest Earned (TIE) Ratio=?

Answer

A.
3.35

B.
4.31

C.
0.70

D.
2.35

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