The Morrit Corporation has $960,000 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 3 to 1, then its bank will refuse to renew the loan, and bankruptcy will result. What is Morrit's TIE ratio?

Answer rating: 100% (QA)

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