The Higher the Value of the Times Interest Earned Ratio,the

question 199

True/False

The higher the value of the times interest earned ratio,the higher is the proportion of the firm's interest income compared to its contractual interest payments.

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Definitions:

Marginal Tax Rate

The proportion of your earnings that is taxed according to the tax bracket(s) for which you are eligible.

Straight-Line Depreciation

A method of calculating the depreciation of an asset that allocates an equal amount of depreciation each year over the asset's useful life.

Cash Expenses

Outlays of cash during a given period for direct charges such as wages, rent, and utilities.