A Company's Fixed Interest Expense Is $8,000, Its Income Before

question 139

Multiple Choice

A company's fixed interest expense is $8,000, its income before interest expense and income taxes is $32,000. Its net income is $9,600. The company's times interest earned ratio equals:

• A) 0.25.
• B) 0.30.
• C) 0.83.
• D) 3.33.
• E) 4.0.

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Definitions:

Social Rejection

The experience of being deliberately excluded or left out by individuals or groups in social or professional situations.

Shared Environment

The aspects of an individual's environment that are experienced jointly with others, influencing their development and behavior.

Impulse Control

The ability to postpone or deny the immediate response to an idea or behavior.

Materialism

A theory or attitude that physical well-being and worldly possessions constitute the greatest good and highest value in life.