What is current TIE ratio

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Reference no: EM13915458

Alumbat Health has $800,000 of debt outstanding, and it pays an interest rate of 10 percent annually on its bank loan. Alumbat's total revenues are $3,200,000; its average tax rate is 40 percent; and its total margin is 6 percent. If the company does not maintain a TIE ratio of at least four times, its bank will refuse to renew its loan, and bankruptcy will result. What is Alumbat's current TIE ratio?

Reference no: EM13915458

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