Montreal Brewing Company Has an Outstanding Debt of $20 Million

question 59

Multiple Choice

Montreal Brewing Company has an outstanding debt of $20 million.10 percent of the company debt bears an interest cost of 8 percent and the rest costs 6 percent.If their earnings before taxes are $5.2 million,then their times-interest-earned ratio would be:

• A) 3.2
• B) 4.2
• C) 5.2
• D) None of the above

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Definitions:

Descending Aorta

The portion of the aorta that extends downwards from the arch of the aorta, distributing oxygenated blood to the lower parts of the body.

Tunica Media

The middle, muscular layer of the walls of arteries and veins, responsible for regulating the diameter of the vessels.

Smooth Muscle

A type of muscle found in the walls of internal organs such as the intestines and blood vessels, responsible for involuntary movements.

Celiac Trunk

A major artery that supplies blood to the abdominal organs, including the stomach, spleen, and liver.