A Times Interest Earned Ratio of 5

question 108

Multiple Choice

A times interest earned ratio of 5.0 indicates that the firm:

• A) pays 5 times its earnings in interest expense.
• B) earns significantly more than its interest obligations.
• C) has interest expense equal to 5% of EBIT.
• D) has low tax liability.

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Definitions:

von Willebrand Factor

A blood glycoprotein involved in hemostasis, important for the formation of blood clots.

Thromboxanes

Eicosanoid compounds that have a role in the formation of blood clots and the reduction of blood flow to the site of the clot, playing a vital role in homeostasis.

Endothelin

A potent vasoconstrictor peptide produced by endothelial cells that plays a significant role in regulating blood flow and blood pressure.

Fibrinogen

A soluble protein in blood plasma that is converted into fibrin during the clotting process, essential for wound healing.