Tron, Inc. of Guelph has a times interest earned ratio of 4.1. Based on this ratio, a creditor knows that Tron's EBIT must decline by more than __________ before Tron will be unable to cover its interest
Expense.
A) 33%
B) 40%
C) 67%
D) 75%
E) 80%

Question

Quizplus · Accepted Answer

The Answer of Tron, Inc. of Guelph has a times interest earned ratio of 4.1. Based on this ratio, a creditor knows that Tron's EBIT must decline by more than __________ before Tron will be unable to cover its interest
Expense.
A) 33%
B) 40%
C) 67%
D) 75%
E) 80%

Tron, Inc of Guelph Has a Times Interest Earned Ratio of of 4.1