lawsoncorie9612 lawsoncorie9612
  • 25-01-2020
  • Business
contestada

A times interest earned (TIE) ratio greater than 1 means EBIT is ______ the firm's interest expense.

Respuesta :

Xema8 Xema8
  • 26-01-2020

Answer:

Explanation:

Time interest earned ratio ( TIE) = EBIT / Total interest expense

If TIE > 1

EBIT / Total interest expense     > 1

EBIT  > Total interest expense

So  EBIT is  _greater than _____ the firm's interest expense

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