MPI Incorporated has $3 billion in assets, and its tax rate is 35%. Its basic...
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MPI Incorporated has $3 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 8%, and its return on assets (ROA) is 5%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below
What is MPI's times-interest-earned (TIE) ratio? Round your answer to two decimal places.
______x
\begin{tabular}{lr} \multicolumn{1}{c}{ A } & \multicolumn{2}{c}{ B } \\ \cline { 2 } TIE ratio & \\ Total Assets & $3,000,000,000.00 \\ \hline Tax Rate & 35.00% \\ \hline Basic Earning Power (BEP) Ratio & 8.00% \\ \hline Return on Assets (ROA) & 5.00% \\ \hline EBIT & \\ \hline Net Income & \\ \hline Partial Income Statement: & \\ \hline EBIT & \\ \hline Interest & \\ \hline Earnings Before Taxes & \\ \hline Taxes & \\ \hline Net Income & \\ & \\ \hline \hline \end{tabular} \begin{tabular}{c} Formulas \\ #N/A /A \\ #N/A \\ #N/A \\ #N/A \\ #N/A \\ \hline \hline \end{tabular} TIE Ratio \#N/A
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