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15 December, 02:50

A firm has sales of $68,400, costs of $42,900, interest paid of $2,100, and depreciation of $6,500. The tax rate is 34 percent. What is the value of the times interest earned (TIE) ratio?

a. 9.04

b. 15.24

c. 17.27

d. 12.14

e. 24.56

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Answers (1)
  1. 15 December, 05:01
    0
    9.04

    Explanation:

    TIE ratio = profit excluding interest/interest

    expense

    Putting value in above equation;

    TIE ratio = 68400-42900-6500/2100

    TIE ratio = 9.04
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