A company's income before interest expense and income taxes in 2016 and 2017 is $225,000 and $250,000, respectively. Its interest expense was $45,000 for both years. Calculate the company's times interest earned ratio, and comment on its level of risk.

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The Answer of A company's income before interest expense and income taxes in 2016 and 2017 is $225,000 and $250,000, respectively. Its interest expense was $45,000 for both years. Calculate the company's times interest earned ratio, and comment on its level of risk.

A Company's Income Before Interest Expense and Income Taxes in 2016