Assume the Following Data: EBIT = 100; Depreciation = 40;

question 1

Multiple Choice

Assume the following data: EBIT = 100; Depreciation = 40; Interest = 20; Dividends = 10.Calculate the times interest earned (TIE) ratio.(Account for depreciation.)

• A)7.0
• B)5.0
• C)4.7
• D)14.0

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