The Times Interest Earned Ratio Is Computed by Dividing Income

question 12

True/False

The times interest earned ratio is computed by dividing income before interest expense by interest expense.

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Definitions:

Persistence

The tendency of a variable, phenomenon, or condition to continue its existing trend or state over a period.

Mutual Funds

Mutual Funds are investment vehicles that pool money from multiple investors to purchase diversified portfolios of stocks, bonds, or other securities.

Expense Ratio

A measure reflecting the annual cost of investing in a mutual fund or ETF, expressed as a percentage of assets under management.

12b-1 Fee

A fee charged by some mutual funds to cover promotion, distribution, and marketing expenses.