A Firm Has Net Income of $5,890 and Interest Expense

question 56

Multiple Choice

A firm has net income of $5,890 and interest expense of $2,130. The tax rate is 34 percent. What is the firm's times interest earned ratio?

• A) 4.82
• B) 5.19
• C) 5.38
• D) 5.67
• E) 6.33

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Definitions:

Aeronautics Act

Canadian federal legislation that governs aeronautics, aviation safety, and related activities within Canada.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances.

Vacant Possession

An obligation to deliver possession of vacant premises to a tenant at the beginning of a lease period.

Quiet Enjoyment

The right of a tenant or property owner to enjoy their property without interference or nuisance from others.