In the Past Year, TVG Had Revenues of $3 Million

question 73

Multiple Choice

In the past year, TVG had revenues of $3 million, cost of goods sold of $2.5 million, and depreciation expense of $200,000.The firm has a single issue of debt outstanding with a face value of $1 million, market value of $.92 million, and a coupon rate of 8%.What is the firm's times interest earned ratio? (Use value in dollars)

• A)3.75
• B)2.98
• C)2.80
• D)3.40

---

Definitions:

Specialized U.N. Agency

refers to an autonomous organization affiliated with the United Nations, focusing on specific sectors like health, agriculture, or education, such as WHO or FAO.

International Court of Justice

The International Court of Justice is the principal judicial organ of the United Nations, responsible for settling legal disputes between states and giving advisory opinions on international legal questions.

Sovereign State

An independent and self-governing political entity recognized by other states, with full control over its internal and external affairs.

Sovereign Immunity

Sovereign immunity is the legal doctrine that the government or state cannot be sued or charged in civil or criminal court without its consent.