What is times-interest-earned ratio

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1. Graser Trucking has $22 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 11%, and its return on assets (ROA) is 4%. What is its times-interest-earned (TIE) ratio? Round your answer to two decimal places

2. Britton Industries has operating income for the year of $2,900,000 and a 37% tax rate. Its total invested capital is $20,000,000 and its after-tax percentage cost of capital is 7%. What is the firm’s EVA?

Reference no: EM131949675

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