Which One of the Following Ratios Is Used to Calculate

question 76

Multiple Choice

Which one of the following ratios is used to calculate the times-interest-earned ratio?

• A) Net profit/Interest expense
• B) Pretax profit/EBIT
• C) EBIT/Sales
• D) EBIT/Interest expense

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Definitions:

Hypothetical Proposition

A proposition or statement that is based on a hypothesis or an assumption rather than on known facts.

Antecedent

The “if” component in a hypothetical proposition.

Hypothetical Proposition

An assumption or proposition made for the sake of argument that explores consequences of its being true, regardless of its actual truth value.

Antecedent

In logic and grammar, it refers to the conditional clause or phrase to which a pronoun refers back; in logic, also the first part of a conditional statement.