Sharky's Loan Co

question 94

Multiple Choice

Sharky's Loan Co.has an annual interest expense of $40,000.If Sharky's times-interest-earned ratio is 3.0,what is Sharky's Earnings Before Taxes (EBT) ?

• A) $80,000
• B) $13,333
• C) $120,000
• D) $160,000

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Definitions:

Minimize Costs

The process or strategy of reducing expenses to the lowest possible level while maintaining efficiency.

Last Dollar

The final unit of currency spent or invested in the completion of a transaction or project.

Marginal Product

The additional output produced by employing one more unit of a particular input, holding other inputs constant.

Wage

A fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to manual or unskilled workers.