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Question
A firm has total interest charges of $10,000 per year, sales of $1 million, a tax rate of 40 percent, and a net profit margin of 6 percent. What is the firm's times-interest-earned ratio?
a. 16 times
b. 10 times
c. 7 times
d. 11 times
e. 20 times
Answer
This answer is hidden. It contains 131 characters.
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