The Times- Interest- Earned Ratio Is Calculated As

question 50

Multiple Choice

The times- interest- earned ratio is calculated as:

• A)income from operations / interest expense.
• B)net income after taxes + interest expense)/interest expense.
• C)net income / interest expense.
• D)income from operations - interest expense)/interest expense.

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Definitions:

Market Equilibrium

The point in a market where the quantity demanded by consumers equals the quantity supplied by producers, resulting in a stable price.

Negative Externality

An adverse effect on a third party not directly involved in a transaction, which results from economic activity without compensation.

Negative Externality

A cost suffered by a third party due to an economic transaction, without compensation.

After-Tax Equilibrium

The balance reached in the market after accounting for the effects of taxes.