SaveMart had income before interest expense and income taxes of $12,581 million and interest expense of $1,063 million. Valueland had income before interest expense and income taxes of
$3,596 million and interest expense of $1,143 million. Calculate the times interest earned for each company and comment on the results.

Question

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The Answer of SaveMart had income before interest expense and income taxes of $12,581 million and interest expense of $1,063 million. Valueland had income before interest expense and income taxes of
$3,596 million and interest expense of $1,143 million. Calculate the times interest earned for each company and comment on the results.

SaveMart Had Income Before Interest Expense and Income Taxes of $12,581