Question: I know the answer is 80% but i do not kow thestep how it gets. i kow interet paid has to lower than ebit to

I know the answer is 80% but i do not kow

I know the answer is 80% but i do not kow thestep how it gets. i kow interet paid has to lower than ebit to avoid copany depression.

0104 The times interest earned ratio is 5.0. Based on this ratio, a creditor knows that EBIT must decline by more than before the firm will be unable to cover its interest expense. TIE (SO TIZ = A) 50 33% B) 67% Tmes brast earned 702+4 C) 75% D) 80% E) 90%

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