Use the following information for Questions 10-12:

A firm has the following accounts and financial data:

______________________________________________________________________________________

Sales revenue $5,000,000 Total Assets $9,000,000

Accounts receivable 1,500,000 Total liabilities 4,000,000

Interest expense 200,000 Preferred stocks 1,000,000

Total operating expenses 1,200,000 Preferred stock dividend 100,000

Cost of goods sold 3,000,000 Tax rate 30%

10. The firm's EBIT is _____ and interest coverage ratio is ____

A. $ 800,000; 4 times

B. $ 1,200,000; 6 times

C. $ 2,000,000; 10times

D. none of the above; the correct answer is _______

11. The firms earnings available for common stockholders is ________.

A. $ 320,000

B. $ 350,000

C. $ 420,000

D. none of the above; the correct answer is ____

12. The firms ROE is ____.

A. 7.0 %

B. 8.0 %

C. 10.5%

D. none of the above; the correct answer is ____