What is manor tie ratio, If the company does not maintain a

What is manor tie ratio

Reference no: EM13262183

The Manor Corporation has $500,000 of debt outstanding, and it pays an interest rate of 10% annually; Manor's annual sales are $2 million, its average tax rate is 30%, and its net profit margin on sales is 5%. If the company does not maintain a TIE ratio of at least 5 to 1, then its bank will refuse to renew the load and bankruptcy will result. What is Manor's TIE ratio?

Reference no: EM13262183

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