Multiple Choice
A firm has total interest charges of $10,000 per year,sales of $1 million,a tax rate of 40 percent,and a net profit margin of 6 percent.What is the firm's times-interest-earned ratio?
A) 16 times
B) 10 times
C) 7 times
D) 11 times
E) 20 times
Correct Answer:
Verified
Correct Answer:
Verified
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