Last year the Rondoelea Products Company had $140 million in annual sales and a net profit margin

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Last year the Rondoelea Products Company had $140 million in annual sales and a net profit margin of 10 percent. In addition, Rondoelea’s average tax rate was 30 percent. If Rondoelea had $40 million of debt outstanding with an average interest rate of 10 percent, what is the firm’s times interest earned ratio?


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Financial Management Principles and Applications

ISBN: 978-0133423822

12th edition

Authors: Sheridan Titman, Arthur Keown, John Martin

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