Calculate the Times Interest Earned Ratio for Paige's Purses, Inc

question 54

Multiple Choice

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 percent, 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

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Definitions:

Apocrine Sweat Gland

A type of sweat gland found in the armpits and genital area, involved in body scent and stress sweating.

Tactile Corpuscle

A type of mechanoreceptor found in the dermal papillae, particularly sensitive to light touch stimuli.

Arrector Pili Muscle

Small muscles attached to hair follicles in mammals, contraction of these muscles causes the hairs to stand on end, known as "goosebumps."

Sebaceous Gland

A tiny organ located in the skin that produces a lubricating oily substance known as sebum, which is released into the hair follicles to keep both the skin and hair moisturized.