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The Correct Times Interest Earned Computation Is

Question 7

Multiple Choice

The correct times interest earned computation is:


A) (Net income - Interest expense - Income taxes) /Interest expense.
B) (Net income + Interest expense - Income taxes) /Interest expense.
C) Interest expense/(Net income + Interest expense + Income taxes expense) .
D) (Net income - Interest expense + Income taxes) /Interest expense.
E) (Net income + Interest expense + Income taxes) /Interest expense.

Correct Answer:

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