Question $4,$ P$4-17($similar to$)$

HW Score: $10\%,2$ of $20$ points

Assignment

Points: $0$ of $1$

$($Capital structure analysis$)$ Last year the Rondoelea Products Company had $$138$ million in annual sales and a net prasit margin of $10\mathrm{.}6$ percent. In addition, Rondoelea's average tax rate was $30$ percent. If Rondoelea had $$40$ million of debt outstanding with an average interest rate of $9\mathrm{.}5$ percent, what is the firm's times interest earned ratio?

The times interest earned ratio is $$ times. $($Round to one decimal place.$)$