What Would Be the Times Interest Earned of a Company

question 23

Multiple Choice

What would be the times interest earned of a company if its total interest charges are $20,000, sales are $220,000, and its net profit margin is 6 percent? Assume a tax rate of 40 percent.

• A) 2.65
• B) 1.1
• C) 2.1
• D) 1.2

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Definitions:

Traditional Isolationism

A foreign policy stance wherein a nation avoids involvement in the affairs and conflicts of other nations while focusing on its own development and issues.

International Conflict

Disputes between countries or nations that can range from diplomatic disagreements to armed warfare.

Constitutional Clash

A conflict that arises due to differing interpretations or implementations of a country's constitution, often involving the judiciary and other branches of government.

Foreign Policymaking

The process by which governments make decisions about their relationships with other countries, including trade, treaties, defense, and humanitarian aid.