Find: Times Interest Earned Question: Given the times interest earned, will the company able to repay their interest expense in case they decide to get additional loans for capital?

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter5: Evaluating Operating And Financial Performance
Section: Chapter Questions
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3. Financial Ratios
I. Given
Current Assets
Common Equity
Current Liabilities
Interest Expense
EBIT
4,000,000.00
1,500,000.00
2,500,000.00
539,000.00
2,493,000.00
Find:
Times Interest Earned
Question:
Given the times interest earned, will the company able to repay their interest
expense in case they decide to get additional loans for capital?
3
Transcribed Image Text:3. Financial Ratios I. Given Current Assets Common Equity Current Liabilities Interest Expense EBIT 4,000,000.00 1,500,000.00 2,500,000.00 539,000.00 2,493,000.00 Find: Times Interest Earned Question: Given the times interest earned, will the company able to repay their interest expense in case they decide to get additional loans for capital? 3
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