Suppose a company has earnings before taxes of $20 billion and its income tax is 35% of

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Suppose a company has earnings before taxes of $20 billion and its income tax is 35% of its earnings before taxes. If the company has an interest expense of $2 billion, its interest coverage ratio is closest to:

A. 6.5 times.

B. 10.0 times.

C. 11.0 times.

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Corporate Finance A Practical Approach

ISBN: 9781118217290

2nd Edition

Authors: Michelle R Clayman, Martin S Fridson, George H Troughton, Matthew Scanlan

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Question Posted: Mar 30, 2024 01:02 AM

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Suppose a company has earnings before taxes of $20 billion and its income tax is 35% of

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To calculate the interest coverage ratio we use the formula Inter...View the full answer

Corporate Finance A Practical Approach

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