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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

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
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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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
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