Debt Management Ratios Calculate the Times Interest Earned Ratio for Paige's

question 108

Multiple Choice

Debt Management Ratios Calculate the times interest earned ratio for Paige's Purses, Inc. using the following information. Sales = $50,000,000, cost of goods sold = $15,000,000, depreciation expense = $2,000,000, addition to retained earnings = $10,000,000, dividends per share = $1.10, tax rate = 30%, and number of shares of common stock outstanding = 10,000,000. Paige's Purses has no preferred stock outstanding.

• A) 0.27
• B) 3.30
• C) 11.00
• D) 16.67

---

Definitions:

Political Structure

The organized system of political institutions and processes through which a country or organization is governed, including branches of government, political parties, and electoral systems.

James II

King of England, Scotland, and Ireland from 1685 to 1688, whose reign ended with the Glorious Revolution due to his Catholic faith.

New England

A region in the northeastern United States comprising six states: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.

James II

was the King of England, Ireland, and Scotland from 1685 to 1688, whose reign ended with the Glorious Revolution due to his attempts to reinstitute Catholic dominance in England.