A Company's Had Fixed Interest Expense of $5,000, Its Income

question 160

Multiple Choice

A company's had fixed interest expense of $5,000, its income before interest expense and income taxes is $17,000, and its net income is $9,400. The company's times interest earned ratio equals:

• A) 3.4.
• B) 1.8.
• C) 0.5.
• D) 1.9.
• E) 0.3.