Question: the answer must be clear and need typed answer MAC Corp.'s sales last year were 5435,000, its operating costs were $362,500, its operating income (EBIT)

the answer must be clear and need typed answer

the answer must be clear and need typed answer

MAC Corp.'s sales last year were 5435,000, its operating costs were $362,500, its operating income (EBIT) was $72,500 and its interest charges were $12,500. What was the firm's times interest earned (TIE) ratio? Please show work for understanding the calculation. Explain why the TIE ratio is important and what can the firm do to improve its TIE ratio

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