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The Morrit Corporation has $600,000 of debt outstanding, and it pays an interest rate of 8% annually. Morrit's annual sa
Posted: Sun Jun 05, 2022 10:04 am
by answerhappygod
- The Morrit Corporation Has 600 000 Of Debt Outstanding And It Pays An Interest Rate Of 8 Annually Morrit S Annual Sa 1 (19.13 KiB) Viewed 41 times
The Morrit Corporation has $600,000 of debt outstanding, and it pays an interest rate of 8% annually. Morrit's annual sales are $3 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 5 to 1, then its bank will refuse to renew the loan, and bankruptcy will result. What is Morrit's TIE ratio?