Montreal Brewing Company has an outstanding debt of $20 million.One-tenth of the company debt bears an interest cost of 8.0% and the balance costs 6.0%.If their earnings before taxes are $5.2 million, then their times-interest-earned ratio would be:
A)3.2
B)4.2
C)5.2
D)None of the above

Question

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The Answer of Montreal Brewing Company has an outstanding debt of $20 million.One-tenth of the company debt bears an interest cost of 8.0% and the balance costs 6.0%.If their earnings before taxes are $5.2 million, then their times-interest-earned ratio would be:
A)3.2
B)4.2
C)5.2
D)None of the above

Montreal Brewing Company Has an Outstanding Debt of $20 Million