What is the interest coverage ratio of this financial accounting question? Galaxy Corp.'s after-tax net income was $150,000. Their interestpaid was $60,000. Assuming the corporate tax rate is 35%, what isGalaxy Corp.'s interest coverage ratio?

Step 1: Definition of Interest Coverage RatioThe Interest Coverage Ratio measures a company's…

Answered: Galaxy Corp.'s after-tax net income was…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 1PEA

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Galaxy Corp.'s after-tax net income was $150,000. Their interest paid was $60,000. Assuming the corporate tax rate is 35%, what is Galaxy Corp.'s interest coverage ratio?