A company had a fixed interest expense of its income

Question

A company had a fixed interest expense of $6,000, its income before interest expense and any income taxes was $18,000 and its net income was $8,400. The company's times interest earned ratio is equals to
A. 0.33
B. 0.71
C. 1.40
D. 3.00
E. 12,000

Answer

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