Balance Sheet and Income Statement Data Indicate the Following Based on the Data Presented Above, What Is the Number

Multiple Choice

Balance sheet and income statement data indicate the following: $\begin{array}{ll}\$ 1,000,000 & \text { Bonds payable, } 10 \% \text { (issued } 1988 \text { due 2012) } \\300,000 & \text { Preferred } 5 \% \text { stock, } \$ 100 \text { par (no change during year) } \\2,000,000 & \text { Common stock, } \$ 50 \text { par (no change during year) } \\350,000 & \text { Income before income tax for year } \\80,000 & \text { Income tax for year } \\50,000 & \text { Common cividends paid } \\15,000 & \text { Preferred dividends paid }\end{array}$ Based on the data presented above, what is the number of times bond interest charges were earned (round to one decimal point) ?

A) 3.7
B) 4.4
C) 4.5
D) 3.5