The Calculation of the Number of Times Interest Is Earned

question 24

Multiple Choice

The calculation of the number of times interest is earned involves dividing

• A) net income by annual interest expense.
• B) net income plus income taxes by annual interest expense.
• C) net income plus income taxes and interest expense by annual interest expense.
• D) none of these answers are correct.

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Definitions:

P-Value

The probability of obtaining test results at least as extreme as the observed results, assuming the null hypothesis is true.

Null Hypothesis

In statistics, a hypothesis that suggests no significant difference or effect, serving as the default assumption to be tested against experimental data.

P-Value

A statistical measure that helps scientists determine the significance of their research results, indicating the probability of observing the obtained results assuming that the null hypothesis is true.

Statistics Student

An individual engaged in the study of statistics, focusing on the collection, analysis, interpretation, and presentation of data.