A firm has net income before interest and taxes of $192,000 and interest expense of $28,800. a. What is the times-interest-earned ratio? (Round your answer to 2 decimal places.) Times-interest eamed times b. If the firm's lease payments are $43,600, what is the fixed charge coverage? (Round your answer to 2 decimal places.) Fixed charge coverage times
A firm has net income before interest and taxes of $192,000 and interest expense of $28,800. a. What is the times-interest-earned ratio? (Round your answer to 2 decimal places.) Times-interest eamed times b. If the firm's lease payments are $43,600, what is the fixed charge coverage? (Round your answer to 2 decimal places.) Fixed charge coverage times
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A firm has net income before interest and taxes of $192,000 and interest expense of $28,800.
a. What is the times-interest-earned ratio? (Round your answer to 2 decimal places.)
Times-interest eamed
times
FOULERION
b. If the firm's lease payments are $43,600, what is the fixed charge coverage? (Round your answer to 2 decimal places.)
Fixed charge coverage
times
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