A Business Reports the Following in Its Financial Statements $$\begin{array} { l r } \text { Net profit before tax } & \$ 100 \\\text { Interest expense } & 20 \\\text { Income tax expense } & 30\end{array}$$

question 16

Multiple Choice

A business reports the following in its financial statements:
$$\begin{array} { l r } \text { Net profit before tax } & \$ 100 \\\text { Interest expense } & 20 \\\text { Income tax expense } & 30\end{array}$$ Its 'times interest earned' ratio is:

• A) 6.0 times
• B) 5.0 times
• C) 3.5 times
• D) 4.0 times

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