A Firm Has Net Income of $4,238 and Interest Expense

question 119

Multiple Choice

A firm has net income of $4,238 and interest expense of $898.The tax rate is 35 percent.What is the firm's times interest earned ratio?

• A)7.33
• B)7.26
• C)5.38
• D)8.26
• E)9.33

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Definitions:

Maslow's Ideas

A psychological theory proposing a hierarchy of human needs, from basic physiological needs to self-actualization.

Predictable Hierarchy

A clearly defined structure in an organization or system where positions and roles are ranked according to levels of authority and responsibility in a predictable manner.

Self-Actualization

The accomplishment or actualization of individual capabilities and possibilities, viewed as a fundamental motivation or requirement in each person.

Maslow's Needs Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated by five levels of needs: physiological, safety, love/belonging, esteem, and self-actualization.