A company has EBIT of $45,000 and interest expense of$15,000. What is its times interest earned ratio?

The problem requires the determination of the TIE ratio. TIE ratio or Times Interest Earned ratio is…

Answered: A company has EBIT of $45,000 and…

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 EBIT of $45,000 and interest expense of $15,000. What is its times interest earned ratio?