Business, 25.01.2021 21:10 jshu1998

The Morrit Corporation has $900,000 of debt outstanding, and it pays an interest rate of 9% annually. Morrit's annual sales are $6 million, its average tax rate is 25%, and its net profit margin on sales is 3%. If the company does not maintain a TIE ratio of at least 6 to 1, then its bank will refuse to renew the loan, and bankruptcy will result. What is Morrit's TIE ratio

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The Morrit Corporation has $900,000 of debt outstanding, and it pays an interest rate of 9% annually...