Even though a business may have gone out of business, a few consumers may still recall the company when thinking about making a new washing machine purchase due to:

The one-year forward exchange rate for the British Pound is $1.80/Pound. If the one-year U.S. interest rate is 4.5% and the one-year British interest rate is 6%, compute the implied spot exchange rate in $/Pound

A) $1.75/pound B) $1.79/pound C) $1.83/pound D) $1.88/pound

The interest coverage ratio equals

A) income before income taxes minus interest expense divided by income before income taxes. B) income before income taxes minus interest expense divided by interest expense. C) income before income taxes plus interest expense divided by interest expense. D) income before income taxes plus interest expense divided by total assets.