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A company has an earnings before interest and taxes (EBIT) of $120,000 and interest expenses of $30,000. What is the times interest earned ratio? A) 3 B) 4 C) 5 D) 6

A company has an earnings before interest and taxes (EBIT) of $120,000 and interest expenses of $30,000. What is the times interest earned ratio? A) 3 B) 4 C) 5 D) 6

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 15MCQ: Hummel Inc. has $30,000 in current assets and $15,000 in current liabilities. What is Hummels...
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A company has an earnings before interest and taxes (EBIT) of $120,000 and interest expenses of $30,000. What is the times interest earned ratio? A) 3 B) 4 C) 5 D) 6
Transcribed Image Text:A company has an earnings before interest and taxes (EBIT) of $120,000 and interest expenses of $30,000. What is the times interest earned ratio? A) 3 B) 4 C) 5 D) 6
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