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Wilmington Corporation's times interest earned ratio in 2017 was: Select one: A. 18.15 B. 20.57 C. 19.16 D. 10.89

Question

Wilmington Corporation's times interest earned ratio in 2017 was:

Select one:

  • A. 18.15
  • B. 20.57
  • C. 19.16
  • D. 10.89
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Solution

To determine Wilmington Corporation's times interest earned ratio for 2017, we would typically follow these steps based on financial data:

  1. Break Down the Problem

    • Identify the formula for the times interest earned (TIE) ratio: Times Interest Earned (TIE)=Earnings Before Interest and Taxes (EBIT)Interest Expense \text{Times Interest Earned (TIE)} = \frac{\text{Earnings Before Interest and Taxes (EBIT)}}{\text{Interest Expense}}
    • Gather the relevant financial data for 2017, specifically EBIT and interest expense.
  2. Relevant Concepts

    • The TIE ratio measures a company's ability to meet its interest obligations, with a higher ratio indicating greater ability.
  3. Analysis and Detail

    • Insert the figures from Wilmington Corporation's financial statements for 2017 into the formula.
    • Calculate the TIE ratio based on the provided EBIT and interest expense.
  4. Verify and Summarize

    • Check calculations to ensure accuracy.
    • Compare the result with the options: A. 18.15, B. 20.57, C. 19.16, D. 10.89.

Final Answer

Without the specific financial figures for Wilmington Corporation in 2017, I cannot provide a definitive answer. However, based on the calculations performed with the actual figures, you would select the option that corresponds to the calculated TIE ratio. Please refer to the company's financial statements for accurate determination.

This problem has been solved

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