A Company Has Fixed Interest Expense of $5,000,its Income Before

question 47

Multiple Choice

A company has fixed interest expense of $5,000,its income before interest expense and income taxes is $17,000,and its net income is $9,400.The company's times interest earned ratio equals:

• A)0.5.
• B)1.8.
• C)1.9.
• D)3.4.
• E)0.3.

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Definitions:

Granodiorite

A coarse-grained igneous rock similar to granite but with more plagioclase feldspar compared to orthoclase feldspar.

Pillow Basalt

A basaltic lava flow that includes pillow structures.

Continental Collision

An event occurring when two continental plates converge, leading to mountain building, earthquakes, and other geologic phenomena.

Descending Plate

In plate tectonics, a slab of the Earth's lithosphere that is moving downward into the mantle at a convergent boundary.