What is the firm times interest earned

Reference no: EM132029993

Question: In the past year, a firm had revenues of $3,000,000, cost of goods sold of $2, 500,000, and depreciation expense of $200,000. The firm has a single issue of debt outstanding with $1,000,000 in principal still left to be paid. The interest rate on this debt is 8%. What is the firm's times interest earned, or interest coverage, ratio?

Reference no: EM132029993

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