Number of Times Interest Is Earned. This ratio measures the burden a company's interest payments represent. Which statement below is true?
a. The numerator of this ratio uses earnings before interest and taxes to compare with interest expense
b The numerator of this ratio uses earnings after interest and taxes to compare with interest expense
c. The numerator of this ratio uses earnings before interest to compare with interest expense
d. None of these to compare with interest expense
Answer: A
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