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Wileys wilderness pays 6 percent interest on its outstanding debt, which equals $200,000. the companys sales are $540,000, its tax rate is 40 percent, and its net profit margin is 4 percent.

Required:

Question 1: What is Wileys TIE?

Question 2: If Wileys wants to maintain a TIE equal to 6.0, what must its sales equal?

Note: Please describe comprehensively and provide step by step solution.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91147902

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