Question
Time interest earned ratio is calculated as EBIT/interest where interest is the interest expenses of the firm. A times interest earned ratio of 6 indicates
Time interest earned ratio is calculated as EBIT/interest where interest is the interest expenses of the firm. A times interest earned ratio of 6 indicates the firm:
A. has a low tax liability.
B. has interest expense equal to 6% of EBIT.
C. has an interest expense equal to 6 times its earnings.
D. earns more than its interest obligations.
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
11th edition
9781259278617, 77861647, 1259278611, 978-0077861643
