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.