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

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Finance

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

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

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

70.2K

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Finance

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