Calculate the Times Interest Earned Ratio Given the Following Information

question 268

Multiple Choice

Calculate the times interest earned ratio given the following information: depreciation expense = $30,000; EBIT = $180,000; cash coverage ratio = 14 times.

• A) 8.0 times
• B) 7.5 times
• C) 11.5 times
• D) 12.0 times
• E) 12.5 times

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Definitions:

Heuristic-Systematic

A model describing two distinct ways people process information: through heuristic cues or systematic analysis.

Boomerang

A curved piece of wood or other material that, when thrown, returns to the thrower. Metaphorically, it can imply actions that backfire on the initiator.

Psychological Reactance

The unpleasant emotional response people experience when someone is trying to restrict their freedom to engage in a desired behavior.

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