What is manors tie ratio, If the company does not maintain

What is manors tie ratio

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Reference no: EM13256060

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 loan and bankruptcy will result. What is Manor's TIE ratio?

Reference no: EM13256060

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