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Which company appear stronger in its ability to pay interest

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Question: Key figures for Research In Motion and Apple follow. (Interest expense figures for Apple are assumed as it has no interest expense for these years.)

900_Apple.png

Required: 1. Compute times interest earned for the three years' data shown for each company.

2. Comment on which company appears stronger in its ability to pay interest obligations if income should decline. Assume an industry average of 18.1.

Reference no: EM131534287

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