What Is the Times Interest Earned Ratio If the EBIT

question 66

Multiple Choice

What is the times interest earned ratio if the EBIT is $1,700,000 and the total interest payment is $150,000?

• A)0.882
• B)8.82
• C)11.3
• D)113

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Definitions:

Financial Ratio

A quantitative measure derived from a company's financial statements used to gauge its performance, financial health, and conditions.

Progress Control

A management technique that involves the monitoring and evaluating of the progress of a project or plan to ensure it meets its objectives within the designated time frame.

SWOT Analysis

A strategic planning technique used to identify a company's internal Strengths and Weaknesses, as well as its external Opportunities and Threats.

Staircase Analysis

A step-by-step approach to dissect and understand the progression or development of an event, process, or data set.