Determining the firm times-interest-earned ratio


Ajax Corp's sales last year were $435,000, its operating costs were $362,500, and its interest charges were $12,500. What was the firm's times-interest-earned (TIE) ratio?

a. 4.97
b. 5.80
c. 5.51
d. 5.23
e. 4.72

Solution Preview :

Prepared by a verified Expert
Finance Basics: Determining the firm times-interest-earned ratio
Reference No:- TGS0677981

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)