Ratios: Times Interest Earned (TIE) Video Lessons

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Problem: A corporation with a high times interest earned ratio means that: A) the company’s operating income is equal to its interest obligations. B) the company’s net income is less than its interest obligations. C) the company is not meeting its interest obligations. D) the company’s net income plus interest expense plus income tax is greater than its interest obligations.

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Problem Details

A corporation with a high times interest earned ratio means that:

A) the company’s operating income is equal to its interest obligations.

B) the company’s net income is less than its interest obligations.

C) the company is not meeting its interest obligations.

D) the company’s net income plus interest expense plus income tax is greater than its interest obligations.

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