If a Firm Has Interest Expenses of $10,000 Per Year

question 12

Multiple Choice

If a firm has interest expenses of $10,000 per year, sales of $700,000, a tax rate of 40%, and a net profit margin of 7%, what is the firm's times interest earned ratio?

• A)8.17
• B)4.90
• C)13.25
• D)9.17

---

Definitions:

Schizophrenia

A chronic mental disorder characterized by periods of psychosis, including delusions and hallucinations.

Lightly Populated Areas

Regions or territories that have low population density, meaning there are few people per unit area of land.

Hallucinations

Perceptions in a conscious and awake state in the absence of external stimuli, which have qualities of real perception.

Hearing

The sensory process that enables the perception of sound, involving the detection of sound waves by the ear and their interpretation by the brain.