With a firm’s sales revenue of $500,000 and earnings before interest and tax (EBIT) $100,000 and interest expense $25,000. The times interest earned ratio for the firm is ______.

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter2: Analysis Of Financial Statements
Section: Chapter Questions
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With a firm’s sales revenue of $500,000 and earnings before interest and tax (EBIT) $100,000 and interest expense $25,000. The times interest earned ratio for the firm is ______.
Question 10 options:

1)

2.0

2)

2.5

3)

4.0

4)

8.0

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