2A2K THE INTEREST EXPENSE FOR A COMPANY IS EQUAL TO ITS EARNINGS BEFO...

49.

CSO: 2A2b

LOS: 2A2k

The interest expense for a company is equal to its earnings before interest and taxes

(EBIT). The company's tax rate is 40%. The company's times-interest earned ratio is

equal to

a.

2.0.

b.

1.0.

c.

0.6.

d.

1.2.