How is the times-interest-earned ratio calculated? a) by dividing earnings before interest charges and dividends paid to

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How is the times-interest-earned ratio calculated?

a) by dividing earnings before interest charges and dividends paid to shareholders by interest charges

b) by dividing earnings before interest charges and taxes by interest charges

Related Book For answer-question

Advanced Financial Accounting

ISBN: 978-0078025877

11th edition

Authors: Theodore E. Christensen, David M. Cottrell, Cassy JH Budd

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Posted Date: Feb 21, 2020 10:44 PM

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How is the times-interest-earned ratio calculated? a) by dividing earnings before interest charges and dividends paid to

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Solution The timesinterestearned ratio is calculated as Answerb by dividing earnings before interest ... View the full answer

Advanced Financial Accounting

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