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Wingding Inc. has $1,000,000 of debt outstanding, and it pays an interest rate of $100,000...

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Finance

Wingding Inc. has $1,000,000 of debt outstanding, and it pays an interest rate of $100,000 annually on its bank loan. Annual sales are $6,000,000; its average tax rate is 40 percent; and its net profit margin on sales is 10 percent. Earnings before taxes is $1,000,000. What is Wingding's current TIE ratio? Answer to two decimal places

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