The Times Interest Earned ratio is:
a. often used to measure how well a firm utilizes its assets.
b. often used to measure a firm's ability to pay its interest expense.
c. often used to measure the overall profit margin of the firm.
d. calculated by dividing net Income by dividends and interest.
Answer: B
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.