(The Following Information Applies to Problems 110 Through 127

question 24

Multiple Choice

(The following information applies to Problems 110 through 127.)
The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.
-What is the firm's TIE?

• A) 2.20
• B) 2.45
• C) 2.72
• D) 3.02
• E) 3.33

---

Definitions:

Prospect Aversion

The tendency of a potential buyer to avoid engagement with sales efforts or marketing materials.

Referral Cycle

The ongoing process of obtaining new customers by referrals from existing ones, creating a continual cycle of expanding business through word-of-mouth.

Center of Influence

An individual or entity that has a significant impact on the opinions, behaviors, or decisions of a target group, often used in marketing and sales strategies.

Endless Chain Method

A sales strategy where current customers are asked to refer new clients, theoretically creating a never-ending chain of referrals.