Ignment: Ch 07: End of Chapter Problems Assignment Score: 20.00% Save Submit Assignment for Grading stions Problem 7-10 (Times Interest-Earned Ratio) Question 4 of 5 Check My Work (1 remaining) eBook Times-Interest-Earned Ratio The Morris Corporation has $400,000 of debt outstanding, and it pays an interest rate of 9% annually. Morris's annual sales are $1.6 million, its average tax rate is 40%, 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 Morris's TIE ratio? Do not round Intermediate calculations. Round your answer to two decimal places. Check My Work (1 remaining) 0 Icon Key Questions Problem 7-10 (Times-Interest-Earned Ratio) Save Submit Assignment for Grading