What is morrit tie ratio

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Point 1: The Morrit Corporation has $570,000 of debt outstanding, and it pays an interest rate of 8% annually. Morrit's annual sales are $3 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.

Question 1: What is Morrit's TIE ratio? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM132489387

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