Consolidated Industries Has Total Interest Charges of $20 000 Per

question 3

Multiple Choice

Consolidated Industries has total interest charges of $20 000 per year.Sales of $2 million generated an operating profit of $220 000 and an after-tax profit of 6% of sales.The firm has a marginal tax rate of 39%.What is the firm's times-interest-earned ratio?

• A)10
• B)11
• C)12
• D)13

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Definitions:

Personality Structure

The organized pattern of behaviors and attitudes that makes a person distinctive, encompassing traits, temperament, and character.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Ego

A component of Sigmund Freud's psychoanalytic theory, representing the rational part of the psyche that mediates between the desires of the id and the morals of the superego.

Latin

An ancient Italic language of the Roman Empire, used historically in scholarship and as a liturgical language of the Catholic Church.