Wileys Wilderness pays 6 percent interest on its outstanding debt, which equals $200,000. The companys sales are
Question:
Wiley’s Wilderness pays 6 percent interest on its outstanding debt, which equals $200,000. The company’s sales are $540,000, its tax rate is 40 percent, and its net profit margin is 4 percent.
(a) What is Wiley’s TIE?
(b) If Wiley’s wants to maintain a TIE equal to 6.0, what must its sales equal?
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a TIE EBITINT so find EBIT and INT Interest 200000 x 006 12000 Net income 540000 x 004 21600 ...View the full answer
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