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A firm’s Revenues equals $2,000,000, Earnings After Taxes equals $250,000, Earnings Before Interest and Taxes equals...

A firm’s Revenues equals $2,000,000, Earnings After Taxes equals $250,000, Earnings Before Interest and Taxes equals $400,000, and Interest payments equals $50,000. What is this firm’s Times Interest Earned?

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Expert Solution

Times interest earned=EBIT/interest expense

=400,000/50,000

which is equal to

=8

jeff jeffy answered 2 years ago
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