hugbug8462 hugbug8462

23-01-2020
Business

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A times interest earned (TIE) ratio of 3.5 times means a firm has _____ that is(are) 3.5 times greater than the firm's interest expense.

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muratkhanmoldir00 muratkhanmoldir00

24-01-2020

Answer:

EBIT

Explanation:

TIE = EBIT/ Interest expense

So, TIE = EBIT/ Interest expense = 3.5 ⇒ EBIT = 3.5 * Interest expense

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