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Problem 28-21 Interpreting financial ratios Here are some data for five companies in the same industry: 22.75 6.50 EBIT Interest expense B 57.75 16.50 Company
Problem 28-21 Interpreting financial ratios Here are some data for five companies in the same industry: 22.75 6.50 EBIT Interest expense B 57.75 16.50 Company Code C D 180.25 -10.50 51.50 3.50 E 203.75 2.50 a. Calculate a measure of times-interest-earned for the industry. b. Calculate a measure of times-interest-earned for each company. c. Calculate the average of the times-interest-earned ratios for the individual companies. d. Does changing the method of calculation make a significant difference to the end result? Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Calculate a measure of times-interest-earned for the industry. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Times-interest-earned Required A Required B
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