Trident Corp

question 7

Multiple Choice

Trident Corp., has debt of $3.35 million with an interest rate of 6.875 percent. The company has an EBIT of $2,766,009. What is its times-interest-earned ratio? Round your final answer to nearest number.

• A) 13 times
• B) 12 times
• C) 11 times
• D) None of the above

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Definitions:

Financial Value

The economic worth or utility of an asset, investment, or financial decision, often determined by its potential to generate income, profit, or other forms of economic benefit.

National Charities Information Bureau

A former organization dedicated to providing information and evaluation on charities, now part of the Wise Giving Alliance.

Charity Fraud

Illegal acts committed under the guise of charitable activity, often involving the solicitation of funds from unsuspecting donors for personal use or non-charitable purposes.

Nonprofit Organization Behavior

Refers to the patterns of action and dynamics within organizations that do not aim for profit but rather focus on fulfilling a social mission.