This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: 1,500 EBIT $15,450 $ (795) Interest Expense $ 1,900 $ 1,500 Times interest earned 8.1 times N/M A times interest earned ratio of 23 or more indicates that interest expense should reasonably be covered. If the times interest earned ratio is less than two it will be difficult to find a bank to loan money to the business....
View Full Document
- Spring '09