MCQs > Finance & Management > Generally Accepted Accounting Principles (GAAP) > If Earnings before Interest and Taxes (EBIT) is $10,000, interest expense is $500 and number of outstanding common stocks are 20,000, which of the following is the value of interest coverage ratio?

Generally Accepted Accounting Principles (GAAP) MCQs

If Earnings before Interest and Taxes (EBIT) is $10,000, interest expense is $500 and number of outstanding common stocks are 20,000, which of the following is the value of interest coverage ratio?

Answer

Correct Answer: 20

Explanation:

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