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Thomson Trucking has $13 billion in assets, and its tax rate is 40%. Its basic earning...

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Accounting

Thomson Trucking has $13 billion in assets, and its tax rate is40%. Its basic earning power (BEP) ratio is 18%, and its return onassets (ROA) is 7%. What is its times-interest-earned (TIE) ratio?Round your answer to two decimal places.

Answer & Explanation Solved by verified expert
4.4 Ratings (839 Votes)
Step 1 Calculate EBIT To calculate EBIT we need to use the following formula for BEP BEP EBITTotal Asstes Substituting values in the above formula we get 18 EBIT13000000000    See Answer
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