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25-01-2020
Business

contestada

A times interest earned (TIE) ratio greater than 1 means EBIT is ______ the firm's interest expense.

Respuesta :

26-01-2020

Answer:

Explanation:

Time interest earned ratio ( TIE) = EBIT / Total interest expense

If TIE > 1

EBIT / Total interest expense > 1

EBIT > Total interest expense

So EBIT is _greater than _____ the firm's interest expense

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