(Answered) The hr pickett corporation has 500000 of debt outstanding

Finance

The H.R. Pickett Corporation has $500,000 of debt outstanding, and it pays an interest rate of 10 percent annually. Pickett"s annual sales are $2 million, its average tax rate is 30 percent, and its net profit margin on sales is 5 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 Pickett"s TIE ratio?

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