A Firm Has Total Interest Charges of $10,000 Per Year

question 98

Multiple Choice

A firm has total interest charges of $10,000 per year, sales of $1 million, a tax rate of 40 percent, and a net profit margin of 6 percent. What is the firm's times-interest-earned ratio?

• A) 16
• B) 10
• C) 7
• D) 11
• E) 20

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Definitions:

General Anesthesia

A medically induced coma and loss of protective reflexes, used during surgery to block pain and consciousness.

Conscious Sedation

A medical procedure that involves administering drugs to a patient to relieve pain and reduce awareness during a medical test or procedure, while maintaining the patient's ability to respond to verbal commands.

Local Anesthesia

A type of anesthesia used to numb a specific area of the body to prevent pain during surgical procedures or medical interventions.

Anticoagulant

A substance that prevents blood from clotting, used in medical treatment to prevent blood clots.