In the Past Year,TVG Had Revenues of $3 Million,cost of Goods

question 6

Multiple Choice

In the past year,TVG had revenues of $3 million,cost of goods sold of $2.5 million,and depreciation expense of $200,000.The firm has a single issue of debt outstanding with a face value of $1million,market value of $.92 million,and a coupon rate of 8%.What is the firm's times interest earned ratio?

• A) 3.75
• B) 2.98
• C) 2.80
• D) 3.40

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