Question: Last year the Rondoelea Products Company had 140 million in
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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