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

question 92

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 would the times interest earned ratio be for the company?

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

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Definitions:

Working Memory

An intellectual mechanism possessing restricted capability, tasked with momentarily storing data for processing purposes.

Deductive Reasoning

A logical process where one arrives at a specific conclusion based on general premises or principles.

Formal Operational Reasoning

The stage of cognitive development during which people begin to think logically about abstract concepts and hypothetical situations.

Abstractly

Thinking or reasoning in a way that is not tied to concrete physical reality, involving conceptual or theoretical considerations.