Suppose We Calculate a Times Interest Earned Ratio of 29

question 109

Multiple Choice

Suppose we calculate a times interest earned ratio of 29 for Colgate-Palmolive. We can conclude

• A) Colgate-Palmolive may experience some difficulty meeting it's interest payments.
• B) Colgate-Palmolive is very unlikely to have difficulty meeting it's interest payments.
• C) Colgate-Palmolive has $29 of operating cash flow for every dollar of interest expense.
• D) Colgate-Palmolive's EBITDA is 29 times larger than its interest expense.

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Definitions:

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