Orono Corp had total assets of $2,500,000, debt-to-assets ratio of 40%, sales of $725,000, and (net)...

 

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Orono Corp had total assets of $2,500,000, debt-to-assets ratio of 40%, sales of $725,000, and (net) profit margin of 8% last year. The company did not have any preferred stocks and had a tax rate of 21%. The interest rate on debt was 9%. What was the firm's time-interest-earned (TIE) ratio? Orono Corp had total assets of $2,500,000, debt-to-assets ratio of 40%, sales of $725,000, and (net) profit margin of 8% last year. The company did not have any preferred stocks and had a tax rate of 21%. The interest rate on debt was 9%. What was the firm's time-interest-earned (TIE) ratio?

Answer rating: 100% (QA)

The timesinterestearned TIE ratio also known as the interest coverage ratio measures a companys ... View the full answer