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Montreal Brewing Company Has an Outstanding Debt of $20 Million

Question 83

Multiple Choice

Montreal Brewing Company has an outstanding debt of $20 million.One-tenth of the company debt bears an interest cost of 8.0% and the balance costs 6.0%.If their earnings before taxes are $5.2 million, then their times-interest-earned ratio would be:


A) 3.2
B) 4.2
C) 5.2
D) None of the above

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