Debt Management Ratios Calculate the Times Interest Earned Ratio for Paige's

question 67

Multiple Choice

Debt Management Ratios 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