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Cynthia Smith Is Evaluating a Bond Investment in ABC Company

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Cynthia Smith is evaluating a bond investment in ABC company.She is concerned about the corporation's ability to make future interest payments.Determine the company's times interest earned ratio if the company has operating income before interest and taxes of $12,235 million and interest expense of $1,025 million in 2017 and interpret it.

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Times interest earned = $12,235 / $1,025...

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