The balance sheet and income statement for Isnet Corporation are as follows: Isnet's stock was selling for $10 a share at the end of 2007,and there were 1 million shares outstanding. Isnet paid dividends of $0.10 a share in 2007
-Refer to the information above. Calculate Isnet's Times Interest Earned ratio for 2007.

Question

The balance sheet and income statement for Isnet Corporation are as follows:   Isnet's stock was selling for $10 a share at the end of 2007,and there were 1 million shares outstanding. Isnet paid dividends of $0.10 a share in 2007
-Refer to the information above. Calculate Isnet's Times Interest Earned ratio for 2007.

Quizplus · Accepted Answer

The Times Interest Earned (TIE) ratio is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. Without specific financial figures provided in the question, the correct answer cannot be determined through calculation. However, based on the options given, if A) 1.88 is the correct answer, it would imply that Isnet's earnings were 1.88 times greater than its interest expenses for the year 2007.

The Balance Sheet and Income Statement for Isnet Corporation Are