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A times interest earned (TIE) ratio of 3.5 times means a firm has _____ that is(are) 3.5 times greater than the firm's interest expense.
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A times interest earned (TIE) ratio of 3.5 times means a firm has _____ that is(are) 3.5 times greater than the firm's interest expense.

User Dawid Pura
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1 Answer

3 votes

Answer:

EBIT

Step-by-step explanation:

TIE = EBIT/ Interest expense

So, TIE = EBIT/ Interest expense = 3.5 ⇒ EBIT = 3.5 * Interest expense

User Fractals
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