What Is the Formula for Calculating the Times-Interest Earned (TIE)

question 26

Multiple Choice

What is the formula for calculating the times-interest earned (TIE) ratio?

• A)TIE ratio = Interest charges ÷ Total liabilities
• B)TIE ratio = Earnings per share ÷ Interest charges
• C)TIE ratio = Sales ÷ Interest charges
• D)TIE ratio = Earnings before interest and taxes ÷ Interest charges
• E)TIE ratio = Interest charges ÷ Net income

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Definitions:

Estimated Dose

A calculated approximation of the amount of a drug or substance required for a specific therapeutic effect in a patient, considering various factors.

Mcg

Microgram, a unit of mass equal to one millionth of a gram.

Ml

Milliliter, a unit of volume in the metric system, commonly used to measure liquids or fluid substances in medicine.

Drug Concentration

The amount of a drug within a given volume or weight of blood, serum, or other bodily fluids, critical for therapeutic effectiveness.