Calculate the Times Interest Earned Ratio for Paige's Purses, Inc

question 54

Multiple Choice

Calculate the times interest earned ratio for Paige's Purses, Inc. using the following information: sales = $50,000,000, cost of goods sold = $15,000,000, depreciation expense = $2,000,000, addition to retained earnings = $10,000,000, dividends per share = $1.10, tax rate = 30 percent, and number of shares of common stock outstanding = 10,000,000. Paige's Purses has no preferred stock outstanding.

• A) 0.27
• B) 3.30
• C) 11.00
• D) 16.67

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Definitions:

Organizational Behaviour

The study of both group and individual performance and activity within an organization, focusing on understanding, predicting, and managing behavior in a professional setting.

Cross-Cultural Differences

Refer to the variations in norms, values, beliefs, and practices among people from different backgrounds and societies.

Managerial Activities

Tasks and responsibilities undertaken by managers, such as planning, leading, organizing, and controlling to achieve organizational goals.

Mintzberg

A reference to Henry Mintzberg, a renowned academic and author known for his work on business and management practices, especially in the context of organizational structures and strategy.