Multiple Choice
What is the formula for calculating the times-interest earned (TIE) ratio?
A) TIE ratio = Interest charges ÷ Total liabilities
B) TIE ratio = Earnings per share ÷ Interest charges
C) TIE ratio = Sales ÷ Interest charges
D) TIE ratio = EBIT ÷ Interest charges
E) TIE ratio = Interest charges ÷ Net income
Correct Answer:
Verified
Correct Answer:
Verified
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