If a Company Had Net Income of $2,379,600,interest Expense of 234,000,a

question 98

Multiple Choice

If a company had net income of $2,379,600,interest expense of 234,000,a tax rate of 40%,and operating income of $4,200,000,what is the times interest earned ratio?

• A)10.17
• B)17.95
• C)7.78
• D)7.18
• E)4.07

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Definitions:

Basis

The underlying support or foundation for an idea, argument, or process, often used in various contexts like mathematics, finance, and other disciplines.

Z Score

A statistical measurement that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations from the mean.

Mean

The mean is a measure of central tendency that calculates the average value of a set of numbers by dividing the sum of those numbers by their quantity.

Z Score

A statistical measure that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations from the mean.