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gayaneshka [121]
3 years ago
13

Times interest earned is calculated by:

Business
1 answer:
pickupchik [31]3 years ago
7 0

Answer:

C)  Dividing income before interest expense and income taxes by interest expense.

Explanation:

Times interest earned is the interest coverage ratio. This explains how many times a company is able to cover its interest expense as relative to its income.

This is calculated by Dividing income before interest expense and income taxes by the interest incomes. This basically conveys signals about the performance of the company and its solvency by finding a performance measure of how many times a company can pay off its debt obligations.

A higher interest times earned metric means a healthier firm.

Hope that helps.

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Answer: A. The face value is $500, the coupon is $50, and the coupon will mature in 3 years

Explanation: From the above question, one is able to note that the interest rate (r) is 8%, time (t) is 3 years to maturity and the face value of the bond is $500 while the coupon is $50.

The above is a formula for coupon-bearing bond and it shows that the price of a bond is the present value of its promised cash flows.

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Explanation:

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3 years ago
Even though Firm A's current ratio exceeds that of Firm B, Firm B's quick ratio might exceed that of A. However, if A's quick ra
LekaFEV [45]

Answer: False

Explanation:

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The current ratio is the Current Assets divided by Current liabilities. The Quick ratio is Current Assets less inventory divided by Current liabilities.

B's current ratio can therefor be larger than A's if it has more inventory than A such that when we calculate the current ratio of B, the extra inventory would give it a higher current ratio than A.

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Answer:

b. Production exceeds sales for that period.

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Thepotemich [5.8K]
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</span>
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