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| Subject:
interest earned?
Category: Business and Money > Accounting Asked by: fatima1102-ga List Price: $2.00 |
Posted:
11 Sep 2005 16:48 PDT
Expires: 11 Oct 2005 16:48 PDT Question ID: 566912 |
Given the following data: EBIT = 100; Depreciation = 40; Interest =
20; Dividends = 10; calculate the Times Interest Earned (TIE) ratio. |
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| Subject:
Re: interest earned?
Answered By: denco-ga on 11 Sep 2005 20:23 PDT Rated:  |
Howdy fatima1102-ga, The Investopedia.com web site gives us the formula for figuring out the Times Interest Earned (TIE) ratio. http://www.investopedia.com/terms/t/tie.asp "Times Interest Earned = EBIT / Total Interest" So, in your example, EBIT = 100 and we divide that by Interest = 20 to give us Times Interest Earned = 5 If you need any clarification, please feel free to ask. Search strategy: Google search on: "Times Interest Earned" ://www.google.com/search?q=%22Times+Interest+Earned%22 Looking Forward, denco-ga - Google Answers Researcher |
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rated this answer:
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| Subject:
Re: interest earned?
From: denco-ga on 13 Sep 2005 17:29 PDT |
Thanks for the 5 star rating, fatima1102-ga. Looking Forward, denco-ga - Google Answers Researcher |
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