A Firm Has Total Interest Charges of R10,000 Per Year

question 22

Multiple Choice

A firm has total interest charges of R10,000 per year, sales of R1 million, a tax rate of 40 percent, and a net profit margin of 6 percent.What is the firm's times-interest-earned ratio?

• A) 16 times
• B) 10 times
• C) 7 times
• D) 11 times
• E) 20 times

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Definitions:

Thermoregulation

The process by which an organism maintains an optimal body temperature despite environmental changes.

Low Birth Weight

A term used when a newborn weighs less than 2,500 grams (5 pounds, 8 ounces) at birth, which can lead to health issues.

Hyperthermia

Hyperthermia is a condition resulting from abnormally high body temperature, often due to environmental heat exposure or the body's inability to cool down properly.

Capillary Refill

The time taken for color to return to an external capillary bed after pressure is applied; used to assess circulatory status.