Determine what is manors tie ratio
Econometrics
The Manor Corporation has $800,000 of debt outstanding, and it pays an interest rate of 12 percent annually. Manor’s annual sales are $2.4 million, its average tax rate is 35 percent, and its net profit margin on sales is 7 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 Manor’s TIE ratio?
