Determine what is manors tie ratio

Reference no: EM13225092

The Manor Corporation has $800,000 of debt outstanding, and it pays an interest rate of 12 percent annually. Manor's annual sales are $2.4 million, its average tax rate is 35 percent, and its net profit margin on sales is 7 percent. If the company does not maintain a TIE ratio of at least 5 times, its bank will refuse to renew the loan, and bankruptcy will result. What is Manor's TIE ratio?

Reference no: EM13225092

Questions Cloud

Explain prosthetic groups of the electron-transport chain : Rank the following redox-active coenzymes and prosthetic groups of the electron-transport chain in order in increasing affinity for electrons. Use 1 for the species with the lowest electrn affinity and a 5 for the highest affinity. Explain how you..

Explain why is the initial concentration of iron : Yet the stock bottle clearly reads 0.0020 M. Why? Similarly, why is the initial concentration of iron (III) ion 0.10 M when the stock bottle contained 0.20 M iron (III) nitrate?

Which alternative has the lower cost-annual percentage yield : A $35 million private placement with a large pension fund. Issuance costs are $500,000, the bond has a 9.25% annual coupon, and the bond has a 20-year life. Which alternative has the lower cost (annual percentage yield)

What is the relative price of the two sporting events : Suppose that the NFL Superbowl ticket ocsts $125 and the Wimbledon ticket costs 75 british pounds and the exchange rate is 1.77. What is the relative price of the two sporting events Which event is relatively inexpensive

Determine what is manors tie ratio : The Manor Corporation has $800,000 of debt outstanding, and it pays an interest rate of 12 percent annually. Manor's annual sales are $2.4 million, its average tax rate is 35 percent, and its net profit margin on sales is 7 percent.

What is the euac for the operating budget : A transportation engineer received a request to installed dynamic traffic signals to replace static vehicle control devices at an intersection. The engineer must prepare an estimate of an operating budget for a ten year period, if the signal were ..

What is the relationship between each set of commodities : McIntosh and Golden Delicious apples is 0.8, between apple and apple juice is 0.5, between apples and cheese is 0.4, and between apples and beer is 0.1 What can you say about the relationship between each set of commodities

Explain a ruby laser produces radiation of wavelength : A ruby laser produces radiation of wavelength 633 nm in pulses with a duration of 1.00*10^-9s. If the laser produces 0.475 J of energy per pulse, how many photons are produced in each pulse?

Explain what is the molar concentration of bio3 : 50.00ml of BiO3- is titrated with 26.43ml 0.02982M Fe2+. What is the molar concentration of BiO3-? How many mg of NaBiO3 were in the 50.00ml sample? [BiO3-] = _______________ M mNaBiO3 = _______________ mg

User Account

All Pages