The Morrit Corporation has $1,020,000 of debt outstanding, and it pays an interest rate of 11%...

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The Morrit Corporation has $1,020,000 of debt outstanding, and it pays an interest rate of 11% 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 4 to 1, then its bank will refuse to renew the loan, and bankruptcy will result. What is Mornt's TIE ratio? Do not round intermediate calculations. Round your answer to two decimal places. The Morrit Corporation has $1,020,000 of debt outstanding, and it pays an interest rate of 11% 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 4 to 1, then its bank will refuse to renew the loan, and bankruptcy will result. What is Mornt's TIE ratio? Do not round intermediate calculations. Round your answer to two decimal places.

Answer rating: 100% (QA)

To calculate Morrit Corporations Times Interest Earned TIE ratio we need to use the following formul... View the full answer