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The Morris Corporation has $800,000 of debt outstanding, and it pays an interest rate of 10%...

The Morris Corporation has $800,000 of debt outstanding, and it pays an interest rate of 10% annually. Morris's annual sales are $4 million, its average tax rate is 30%, and its net profit margin on sales is 3%. If the company does not maintain a TIE ratio of at least 5 to 1, its bank will refuse to renew the loan and bankruptcy will result. What is Morris's TIE ratio? Do not round intermediate calculations. Round your answer to two decimal places.

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 8 months ago
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