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The Information Related to Interest Expense of Stereo Music Is

Question 39

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The information related to interest expense of Stereo Music is given below:  Net income $255,000 Income tax expense 102,000 Interest expense 65,000\begin{array} { | l | r | } \hline \text { Net income } & \$ 255,000 \\\hline \text { Income tax expense } & 102,000 \\\hline \text { Interest expense } & 65,000 \\\hline\end{array} Based on the above data, which of the following is the interest coverage ratio?


A) 4.14 times
B) 3.92 times
C) 6.49 times
D) 4.92 times

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