A company has an EBIT of $200,000 and annual interest expenses of $50,000. What is the interest coverage ratio? A) 3.0 B) 4.0 C) 5.0 D) 6.0

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...
icon
Related questions
Question

Subject: Accounting

A company has an EBIT of $200,000 and annual interest expenses of $50,000. What is the interest
coverage ratio?
A) 3.0
B) 4.0
C) 5.0
D) 6.0
Transcribed Image Text:A company has an EBIT of $200,000 and annual interest expenses of $50,000. What is the interest coverage ratio? A) 3.0 B) 4.0 C) 5.0 D) 6.0
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning