What is national current times interest earned ratio

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Question - ABC Company's net income last year was P65,000 and its interest expense was P15,000. Total assets at the beginning of the year were P630,000 and total assets at the end of the year were P650,000. The company's income tax rate was 25%. The company's return on total assets (based on adjusted net income) for the year was closest to?

ABC Corporation has P850,000 of debt outstanding, and it pays an interest rate of 10 percent annually on its bank loan. ABC's annual sales are P3,200,000, its average tax rate is 40 percent, and its net profit margin on sales (Net income after tax) is 6 percent.  If the company does not maintain a Times Interest Earned ratio of at least 4 times, its bank will refuse to renew its loan, and bankruptcy will result. What is National's current Times Interest Earned ratio?

Reference no: EM133106700

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