In the Past Year,TVG Had Revenues of $3 Million,cost of Goods

Multiple Choice

In the past year,TVG had revenues of $3 million,cost of goods sold of $2.5 million,and depreciation expense of $200,000.The firm has a single issue of debt outstanding with a face value of $1million,market value of $.92 million,and a coupon rate of 8%.What is the firm's times interest earned ratio?

A) 3.75
B) 2.98
C) 2.80
D) 3.40