A Company Had a Fixed Interest Expense of $6,000,its Income

question 107

Multiple Choice

A company had a fixed interest expense of $6,000,its income before interest expense and any income taxes was $18,000 and its net income was $8,400.The company's times interest earned ratio is equals to

• A)0.33
• B)0.71
• C)1.40
• D)3.00
• E)12,000

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Definitions:

Xylem

The vascular tissue in plants responsible for the conduction of water and nutrients from the roots to the leaves.

Herbaceous Stems

Stems that are soft, green, and flexible, typically found in plants that do not produce wood and die back at the end of the growing season.

Epidermis

The outermost layer of cells covering an organism, particularly in plants where it forms a protective barrier against environmental damage.

Endodermis

The innermost layer of the plant root cortex. Endodermal cells have a waterproof Casparian strip around their radial and transverse walls that ensures that water and minerals enter the xylem only by passing through the endoderm cells.