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Tron, Inc of Guelph Has a Times Interest Earned Ratio of of 4.1

Question 118

Multiple Choice

Tron, Inc. of Guelph has a times interest earned ratio of 4.1. Based on this ratio, a creditor knows that Tron's EBIT must decline by more than __________ before Tron will be unable to cover its interest expense.


A) 33%
B) 40%
C) 67%
D) 75%
E) 80%

Correct Answer:

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