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When formulating financial policy,managers also have to consider the appropriate balance between:
Disposal
The method of eliminating an asset or waste, which may include selling, recycling, or throwing away.
Times Interest Earned
A financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.
Interest Expense
The financial burden placed on a company due to borrowing funds over a time span.
Income Tax Expense
The cost associated with the taxes levied on the income of a company by the government.
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